Porc,
I didn't bother reading the entire post because I could already see after one paragraph it was heading to places that I don't want to waste time on.
>>As I understand it, your position is:
Graham and Dodd = Value Investing = Discounted Present Value of Future Free Cash
Flow (DCF), period, end of story, now and forever.<<
My position is approximately that. However, there are many methods within that definition that can be used to determine a "good" business value. There are numerous possible models and approaches. Some look at earnings streams, some at assets, some at free cash flows, some at ROE etc... But at core they all are trying to buy more in "business value" than they are paying.
>>Ergo, the implied argument has run, anything other than DCF that appears under the
heading "Graham and Dodd", "Value Investing" or variants, is misrepresentation, or, in
more recent versions, "preposterous", "not worth discussing", or the like.<<
Anything that does not fall into the category of trying to buy more in "business value" than you are paying for is not worthy of discussion by ME! I consider inclusion of greater fool theory and similar such methodolgy as part value investing to be preposterous.
You should certainly use whatever method you like. Just don't discuss it with me. I think it's nonsense even if it works for others. I am buying and selling businesses, period.
Wayne |
