SCHW is fairly valued at market price; low margin of safety due to rate sensitivity and limited upside.

The next company is Schwab. Now, the stock has fallen slightly as interest rates have risen, but I am surprised that it rose so much over the past year despite rising interest rates.

We return to our intrinsic value model. Dividends are available. If it grows by 5%, and if it expects a future dividend yield of 5%, i.e., a decrease from the current 3%, then the intrinsic value is much lower than the current share price.

With a higher growth rate of 7%, and everyone being satisfied with future distributions of 3%, i.e. 100 divided by 30 equals 3.3%, then the present value is justified to achieve an expected return of 10%.

The margin of safety, growth of 3% in the event of a recession, and an expected return of 6-7%, which may happen with rising interest rates, the margin of safety there is much lower.

A 3% stake is simply risky, especially if you look at the companies that are out there. We will talk about Verizon, but these are market-priced companies. Therefore, from this perspective, I would place Schwab here as a company that achieves market returns with market risks.