The dangers and benefits of using Discounted Cash Flow analysis reports
Opinions of fair value based on DCF calculations are necessarily inexact (rightly vague?). But, at least they at least ask the right question.
Month: May 2020
How to get the most out of analysts’ reports
Since analysts’ reports are so important in our work of identifying and studying companies to invest in, we need to look at the strengths and weaknesses of these reports.
The joy of higher return with no more risk
If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying
Many investors just don’t understand the risk/reward trade-off
Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain.
Problems with CAPE Part lll
Wrap up on the drawbacks of CAPE. A fair level for price earnings ratios has changed over the years.
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