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1
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1answer
98 views

Question about a quote from The Intelligent Investor

I am having a bit of trouble understanding the following quote: Companies that are inherently speculative because of widely varying earnings tend to sell both at a relatively high price and at a ...
3
votes
1answer
127 views

Depreciation question from Benjamin Graham book

I am reading The Interpretation of Financial Statements by Benjamin Graham. Ch. VI, Depreciation and Depletion contains the following wording: When property is retired its gross value is deducted ...
3
votes
1answer
55 views

What are the ways to price a holding company?

I would like to know how people value holding companies. I guess the most famous one is Berkshire ($BRK.A - $BRK.B). And others exist. These holdings usually have a lot of exposure to realestate, PE ...
1
vote
0answers
72 views

P/E & P/B of stocks purchased by Warren Buffett

I am looking for data about Warren Buffett's famous purchases. For e.g. when Warren Buffett purchased stock of Coke, American Express, Moody's & other of his long term purchases what was the P/...
1
vote
1answer
239 views

A question about CAPEX when Calculating Free Cash Flow (FCF)

When performing the following to determine free cash flow: Free Cash Flow = Operating Cash Flow - Capital Expenditures Do I include only Capital Expenditures (13,732 in the example below), or do I ...
37
votes
7answers
11k views

Why does Warren Buffet consider real estate as productive asset?

In Berkshire Hathaway 2011 letter, Buffet said that: My own preference – and you knew this was coming – is our third category: investment in productive assets, whether businesses, farms, or real ...
2
votes
2answers
597 views

Take out a loan to invest

So, maybe a crazy idea. Let's say I take out a personal loan at my credit union with "0" to 4.5% interest with a payment I can afford from my personal income. Repayment over 5 years. I take the ...
0
votes
1answer
159 views

What is the math behind Buffett's 2015 Per-Share Investments figure for Berkshire Hathaway?

Multiplying the $159,794 figure by 1.6m shares gets me $262,541,542,000.00. Here's what I did to try and reproduce that figure (amounts in millions): My attempt Which is about 10 billion dollars off....
20
votes
5answers
7k views

Why does Warren Buffett say his fund performance, relatively, is likely to be better in a bear market than in a bull market?

Currently, I am reading his annual letter. In his letter, he always says that his fund performance is likely to be better in a bear market than in a bull market, but I don't know why. Could someone ...
0
votes
1answer
457 views

Should I subtract these costs to calculate the “Net Present Value”? [closed]

So now I know that in order to workout the " Net Present Value " I have to find the " Present Value " of each year.. And for that I need to find the revenue of each year .. However, when there are ...
3
votes
3answers
785 views

Do Fundamentals Matter Anymore in Stock Markets? [closed]

As a relatively new student to the market, and as someone who would inherently define himself as a value investor, I can't help but feel that current market conditions beg the question: do ...
1
vote
1answer
90 views

Why do some companies report how well their EBITDA performed even if their overall net profit did equally well?

I recall reading somewhere that Warren Buffet once mentioned that he avoided companies that reported EBITDA growth, and considered it as a "useless metric". Ok fair enough. I guess EBITDA could ...
1
vote
3answers
212 views

The Intelligent Investor: Northern Pacific Railway example

I am reading the revised edition of Ben Graham's THE INTELLIGENT INVESTOR (First Collins Business Essentials Edition, 2006) with commentaries by Jason Zweig. In chapter 7, "Portfolio Policy for the ...
3
votes
4answers
288 views

Value investing

Does value investing work? More specifically, I've taken Dr. Damodaran's course on valuation (available online at his website) and have read parts of his textbook "Investment Valuation", and am coming ...
8
votes
1answer
389 views

Analyze a security using Benjamin Graham's Defensive Investor Criteria

I would like some help evaluating a security using Graham's Defensive Investing Criteria (Chapter 14 of the Intelligent Investor). As an example security, let's look at NYSE:MEI and each of the ...
2
votes
1answer
107 views

Isn't the subtraction of deprecation and amortization redundant in the calculation of Owner's Earnings?

I'm new to the world of Value Investing (and investing in general) and am trying to fully understand the fundamentals in calculating the Owner's Earnings of a company. According to this blog, Owner's ...
3
votes
2answers
193 views

High frequency trading

Do High frequency trading firm pay commission ? I get charged a hefty price just to place one trade, and yet these guys are placing thousand of trade each day or even more
0
votes
1answer
47 views

US company Warrants issued in Europe

Can one bank issue another companies warrants ? I have been searching for warrants on US companies and turns out that a lot of these warrants are issued in Euro instead and by different banks rather ...
2
votes
2answers
1k views

What Did Benjamin Graham Mean by Earnings Stability in The Intelligent Investor?

On page 386 it lists 5 criteria for stock selection for the enterprising investor. #2 is earnings stability - it reads "Earnings stability: No deficit in the last five years covered in the Stock Guide....
2
votes
1answer
382 views

How to evaluate growth stocks

What are good metrics to evaluate growth stocks? I have been following the site buffettsbooks.com and it teaches you how to evaluate value stocks based on Warren Buffet's principles. These are ...
1
vote
4answers
1k views

Problems with Enterprise Value and better valuation techniques

Enterprise Value is often cited as a better measure of valuation than Market Capitalization. The formula for Enterprise Value starts with Market Capitalization and then adds debt and subtracts cash (...
9
votes
2answers
3k views

Explanation on Warren Buffett's famous quote

What does Warren Buffett says in this article here "In the short term the market is a popularity contest; in the long term it is a weighing machine." What is the analogy with popularity contest ...
6
votes
1answer
711 views

Learning investment--books to read? Fundamental/Value/Motley Fool [closed]

I am looking to learn how to invest better. Currently I follow the Motley Fool recommendations and have done quite well that way, but I'd like to educate myself better so that I can make better ...
5
votes
1answer
128 views

Is the gross amount of US debt dangerous for the small investor?

Does a large national debt affect the long term value of a small investor's worth, if not invested in commodities?