💰Unpacking the Drivers of Value Creation


Hey Reader,

Did you know that the foundation of modern valuation can be traced back to 1938? In his groundbreaking book, The Theory of Investment Value, John Burr Williams introduced the concept that the true value of an asset lies in the present value of its future cash flows, discounted at an appropriate rate.

In today's issue:

  • What drives investment returns? Leandro breaks down the key drivers of value.
  • Warren Buffett on Berkshire Hathaway's valuation. An intriguing perspective from the Oracle of Omaha.
  • Geoff Gannon on free cash flow. Why it’s not the whole story when evaluating businesses.
  • Much more.......

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Start demystifying the stock market with the School of Investing.

Stop procrastinating or wondering where to start. Our comprehensive School of Investing is designed for beginners and advanced investors.

Why Choose Us?

  • 30+ Hours of Content: Learn at your own pace with in-depth courses covering everything from investment strategies to financial statement analysis.
  • Expert Insights: Gain valuable knowledge from industry experts Andrew Sather and Dave Ahern, who break down complex concepts into easy-to-understand lessons.

What You'll Learn:

  • Learn the art of valuation from breakdowns of DCFs, reverse DCFs, and many other methods.
  • How to read financial statements and analyze companies.
  • The importance of moats and how to identify them.
  • Much more....

Connect, learn, and grow with Value Spotlight.


💎NUGGETS

My Favorite Finds

How do we determine what drives returns for investments? Leandro breaks down the drivers of value.

Warren Buffett's thoughts on Berkshire Hathaway's valuation. Intriguing take.

Geoff Gannon breaks down why free cash flow isn't everything.

Valuation Multiples: What they Miss, Why they Differ, and the Link to Fundamentals by Michael Mauboussin. If you know, you know.

Q&A with Mohnish Pabriai at Microsoft. Great talk with some interesting takeaways.

Chris Bloomstran's Semper Augustus Client Letter: Worth the read for the Berkshire breakdown alone. Good weekend read.


🔍Question of the Week


📖Knowledge Tidbits

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Dave Ahern
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Investing for Beginners Podcast


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