If they develop them then the actual profit is shown in the financial statements n benefits the share holders. If they dispose them then depend on how the disposal is booked. Under table ma......U think they'll b generous 2 u?
The calculation was wrong in the sense of wrong assumption. Value A and B are using historical cost rather than market value. The market value will realize when the land is sold or being developed. Thus, Warren statement is absolutely right.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
feifun
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Posted by feifun > 2014-02-10 19:17 | Report Abuse
value on paper only, no dev on the land or dispose the land will not bring any actual profit.