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Strategies & Market Trends : Value Investing
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From: armi12/24/2010 12:58:57 AM
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Does anyone read Berkshire's Owner's Manual and read the intrinsic value paragraphs?

What I found interesting is:

For this exercise, we will ignore the important non-economic benefits of an education and focus strictly on its economic value. First, we must estimate the earnings that the graduate will receive over his lifetime and subtract from that figure an estimate of what he would have earned had he lacked his education. That gives us an excess earnings figure, which must then be discounted, at an appropriate interest rate, back to graduation day. The dollar result equals the intrinsic economic value of the education.

It says interest rate and not desired return or whatnot. What do you think is an appropriate interest rate
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