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:
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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
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