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💰How to Estimate Growth in a DCF
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Hey Reader, He often quotes Warren Buffett: "It is better to own a great company at a fair price than a fair company at a great price," because the great business is a "gift that can keep on giving" long after a cheap stock has simply reached its fair value. In today's issue:
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📖Knowledge Tidbits
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Unlock the mysteries of the stock market with us! We break down complex topics into simple, easy-to-understand language. Join over 21,000+ readers who receive our insights every Tuesday.
Hey Reader,Did you know that before becoming a successful investor, Mohnish Pabrai bootstrapped his IT consulting company TransTech in 1991 with just $30,000 from his 401(k) and $70,000 from credit card debt. He later sold this company for $20 million in 2000. In today's issue: The math behind Buffett's position sizing, the answer surprise me. Where do tech returns come from and how will they look in the future? Breakdown of how to analyze an income statement visually. Much more........
Hey Reader,Did you know that the S&P 500's lowest recorded P/E ratio was 5.31 in 1917, while its highest was 123.73 in May 2009, during the financial crisis? This represents a range of over 2,200% between the most undervalued and overvalued market conditions, demonstrating how dramatically valuation perspectives have shifted across different economic eras. In today's issue: Warren Buffett breaks down how he would invest if he could start over. What is never sell really? Why ROIIC is more...
Hey Reader,Did you know Professor Damodaran constantly emphasizes that there is no single "correct" value for a company? Valuation is filled with uncertainty and bias. The goal isn't to be perfectly right, but to be "less wrong" over time. He views valuation as a craft that improves with practice, humility, and a willingness to acknowledge what you don't know. In today's issue: Aswath Damodaran covers the dark side of valuation Checklist to help evaluate management and capital allocation...