the twenty percent return strategy

The (so-called) value investors have dug a hole for themselves when they talk about margin of safety and bash (higher) discount rate in dealing with risk in cash flows.

They like to discount cash flows at 10%, bring down the present value by 40% as margin of safety, and then expect the stock to give them 20% return.

In fact, I have seen some of them discount earnings, rather than cash flows.

They also have the habit of beating round the bush so much. Can't put across their point without some bullshitting.