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Strategies & Market Trends : Value Investing

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To: Mark Adams who wrote (12012)2/14/2001 10:08:28 AM
From: TimbaBear  Read Replies (1) of 78486
 
Might have to back interest income out of earnings to get a true feeling for the operational performance.

I won't do that. I am going to assume that the rate of return on money invested will be the same as the ROI if that money were employed in any other way. The only time I'd consider backing it out would be if they did, in fact, adopt a rigorous dividend program.

What are your thoughts on "book value" as traditionally computed? I think it is a virtually useless number. That is, if it arrived at by simply dividing accumulated retained
earnings by the number of shares outstanding. I guess the core problem I have is the relevance of "retained earnings" in any value determination.

Timba
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