Asset allocation out of step with modern investment management
We are looking for opportunities and we don’t much care what category they’re in
We are looking for opportunities and we don’t much care what category they’re in
If the job has been correctly done when a common stock is purchased, the time to sell it is – almost never
Buffett analyzed companies more subjectively than Graham, and he found intrinsic value in companies, such as See’s Candies, that Graham would not have touched.
I would rather be vaguely right than precisely wrong
A high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.
If a company’s capital expenditures are simply maintaining the company’s position in its markets, it free cash flow may be unduly high
About forty years ago Buffett experienced a Damascene conversion
We are going to want to get a significantly higher return, obviously — in terms of cash produced relative to the amount we’re outlaying now — for a business than we are from a government bond. That has to be the yardstick at a base.
Opinions of fair value based on DCF calculations are necessarily inexact (rightly vague?). But, at least they at least ask the right question.
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