📖Carl Icahn
Value Discipline
Discipline in valuation determines investment success.
Never overpay for a security, no matter how exciting the story. The price you pay determines your return. Discipline in valuation is the foundation of investment success.
🏠 Everyday Analogy
📖 Core Interpretation
In Value Discipline, Carl Icahn focuses on the gap between price and value. Returns come from paying less than what a business is worth, not from guessing short-term market moves.
💎 Key Insight：The price paid is the most important variable.
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❓ Why It Matters
Ignoring valuation turns even good companies into poor investments. Overpaying compresses future returns and leaves little margin when assumptions are wrong.
🎯 How to Practice
Estimate intrinsic value with conservative assumptions, set clear buy ranges, and act only when price offers a meaningful discount with acceptable downside.
⚠️ Common Pitfalls
Confusing a low price with true cheapness
Using one metric without business context
Overly optimistic assumptions that erase margin of safety
📚 Case Studies
1
eBay–PayPal Spin-Off Campaign (2014)
Icahn took a stake in eBay and urged the company to separate PayPal and improve capital allocation, including more efficient returns of cash to shareholders.
✨ Outcome：eBay agreed to spin off PayPal, unlocking value; combined with buybacks, this enhanced shareholder returns over time.
2
Apple Inc. Board Influence Campaign (2013)
Icahn accumulated a large Apple stake and publicly pushed for increased share repurchases and stronger capital allocation, seeking greater influence and quasi‑board representation through direct engagement and media pressure.
✨ Outcome：Apple expanded its buyback program significantly, boosting shareholder returns; Icahn exited with substantial profits.
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