SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jeffbas who wrote (5229)11/1/1998 9:47:00 AM
From: cfimx  Read Replies (1) of 78576
 
Jeff, regarding the goodwill on TMO. Any acquirer who would buy the whole thing isn't going to calculate the earnings AFTER deducting amortization charges be they 40 year or 10. He is going to look at the PRE TAX cash flow, what's left after real R & D, SG & A and maint cap ex. He then will try and figure out what MULTIPLE of that figure will give him a decent return on his outlay, over time. He will also look at the balance sheet for assets that could be sold off or used to REDUCE his purchase price, dollar for dollar. Again, he will COMPLETELY disregard the amortization charges because they don't effect his CASH return on investment. You should do the same. If you want more conviction about it, take a look at the Berkshire Hathaway Owners Manual published on the WEB site. It will say the same thing.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News