Buffett's formula in valuing all assets, "Aesop's quote, "A bird in the hand is worth two in the bush". Using precise numbers is, in fact, foolish, using a wide range of possibilities is the better approach. The range must be so wide that it is impossible to predict the precise cash flow in and out of the business. An investor needs to have general understanding of business economic and does not need brilliance n blinding insights. Common yardsticks like PE, DY, EY, BV and even CAGR has nothing to do with valuation. They provide clues to the amount and timing of cash flows into and from the business. The range are interest rates, tax rates, business environment changes, etc. In today's quote, " A girl in the convertible is worth five in the phone book". Good luck!!!
Buffett's factors to consider in valuing all assets: Future cash flows, probability, timing n amount. Risk free interest rates, 30 year MGS. Clues to the amount n timing of cash flows, DY, BV, PE n growth rates. Uncertainty, new businesses n rapidly changing industries. Growth is simply a component, usually a plus, sometime a minus, in the value equation. Growth only add Value when ROIC is higher than COC. Others like general understanding of business economic, independent thinking n forever changing mindset. Plus corporate tax rates must be considered. Good luck!!!
i think the reason is many ppl start selling flbhd after getting the 6 cent dividend... before ex-dividend, it was around RM1.61-1.63 only... so the current price is actually already higher (if you count in the 6sen dividend)... so many are selling the shares now...
Dolly chai sifu, plywood price decline already factored in last 2 qtr ler...and results still improving. let the penggoreng press the price... we wait down stairs to collect
tksw, but the price is still declining as of today... and there is no clear sign of recovery for plywood due to gloomy economy... flbhd is in my watch list but for now i think i will not make any move until i can see a clearer picture
RM strengthening a bit...can notice all export counters dropped...that's normal for traders to sell their positions....on the contrary, investors should hold and if possible collect more...let's wait for the quarter results announcement next month
dudu sifu, let KYY sell la. KYY not oni got maybank account.. I just bot a bit.. he sell the lower the better... kakaka. nobody is going to take his shares
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....
tksw
12,831 posts
Posted by tksw > 2017-01-17 10:16 | Report Abuse
ppl go gai-gai buy new clothes already