Tuesday, April 03, 2007
The market undervalues a litigated claim as an asset and overvalues it as a liability.
look at the companies financial documents.
buffetology page 63
buying a business based on the present value
you buy a pinball machine that makes 8$ a day for a year = 2920
interest rate is at 8%
in 10 years you will have 45516.86$
you need to sell based on the present value
in calculator input:
n: 10 years
i=8%
future value = $45516.86
present value = $20619.92
buffetology page 58
look at the companies financial documents.
buffetology page 63
buying a business based on the present value
you buy a pinball machine that makes 8$ a day for a year = 2920
interest rate is at 8%
in 10 years you will have 45516.86$
you need to sell based on the present value
in calculator input:
n: 10 years
i=8%
future value = $45516.86
present value = $20619.92
buffetology page 58
posted by Joe at
10:48 PM
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