- Date added
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March 27, 2024, 7:25 a.m.
- Description
- The tools and practice of valuation is intimidating to most laymen, who assume that they do not have the skills and the capability to value companies. In thi...
- Notes
- Valuation should not be complex.
- Valuation is not accounting.
- Where is the value of a company coming from? Compare p&g with tech companies.
- 4 questions: What are the cash flows? What's the value you create from future growth? How risky is the future growth? When will the business become mature?
- Stories and numbers. Two groups of people should listen to each other. I'm a stories person, and must be disciplined with numbers.
- Synergy, control, brand name, strategic deal, china(fast-growing nation). => weapons of mass distraction.
- You can't value a company if its cashflow is negative forever.
- What's the mood? What's the momentum? People pay high prices because they think they can sell at higher prices.
- There is no smart money. There is only less stupid money.
- What is the right narrative about this company? => this question will drive the valuation of the company.
