Comments on: Discounted Cash Flow Analysis http://www.intelligentinvestorclub.com/value-investing/discounted-cash-flow-analysis Value Investing Strategies of Warren Buffett and Benjamin Graham Fri, 05 Dec 2008 09:33:35 +0000 http://wordpress.org/?v=2.2 By: Martin Lee http://www.intelligentinvestorclub.com/value-investing/discounted-cash-flow-analysis#comment-94 Martin Lee Tue, 31 Jul 2007 04:01:22 +0000 http://www.intelligentinvestorclub.com/value-investing/discounted-cash-flow-analysis#comment-94 He takes 10 mins to churn out his numbers. :) You are right. He targets companies with a wide economic moat so the earnings tend to be fairly stable (and increasing). Anything with unpredicatable earnings is beyond him. :) He takes 10 mins to churn out his numbers. :)

You are right. He targets companies with a wide economic moat so the earnings tend to be fairly stable (and increasing).

Anything with unpredicatable earnings is beyond him. :)

]]> By: Ken http://www.intelligentinvestorclub.com/value-investing/discounted-cash-flow-analysis#comment-93 Ken Tue, 31 Jul 2007 03:57:35 +0000 http://www.intelligentinvestorclub.com/value-investing/discounted-cash-flow-analysis#comment-93 It's better to be approximately right than precisely wrong. Thanks, Martin! Keep the education coming. Actually, I don't think the Buffett even does detailed DCF using CAPM and betas. He probably has a cost of capital in his head already, and since he only looks at companies with steady growing earnings, probably doesn't even have to contend with the issue I raised. It’s better to be approximately right than precisely wrong.
Thanks, Martin! Keep the education coming. Actually, I don’t think the Buffett even does detailed DCF using CAPM and betas. He probably has a cost of capital in his head already, and since he only looks at companies with steady growing earnings, probably doesn’t even have to contend with the issue I raised.

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