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Strategies & Market Trends : Value Investing

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To: Michael Burry who wrote (3516)3/12/1998 2:44:00 PM
From: Chuzzlewit  Read Replies (2) of 78650
 
Hello thread! I just stumbled across this thread, and would like to pose a challenge to all of you. I don't believe a good valuation model exists. The ones that I've seen so far ignore what I believe to be the underpinnings of a rational stock valuation methodology: expected free cash flows, expected growth, risk, and finally, the discount rate with which to tie it all together. I've seen heuristics from the various incarnations of Graham and Dodd, along with PEG and YPEG systems, and frankly, none of them make any mathematical sense.

What do you people think?

Regards,

Paul
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