Deze week is Charlie Munger aan de beurt en volgende week is het Warren’s moment.
Een bedrijf waarderen: hij denkt er het zijne van (in het Engels).
If you do not understand the actual business of the company, you cannot understand the value of the assets related to that business.
- The place to start is at the bottom, with business fundamentals and specifics, and work up.
- Understanding how cash flows will change the future.
- Scrutinize on- and off-balance-sheet assets and liabilities and free cash flow.
The valuation process is inherently imprecise.
Determining the value of a business is most reliable when the process is simple. If Munger determines that the valuation of the business is too hard, he simply says “I pass“.
Valuation is the closest thing to the law of gravity.