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Pastimes : Bad investing information/advice on the net contest -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (170)	11/16/1999 12:12:00 PM
From: The Other Analyst	Read Replies (1) \| Respond to of 214

Thank you for pointing this one out. I began salivating at the thought of "fresh meat" but when I read what is there, I came away disappointed. The book is actually not bad sounding. It seems to be a $29.95 book about how to do discounted cash flow valuation, and how to forecast growth assuming a gradual decay in the growth rate. Yes, I did find something to quibble with. In the example of how to value Microsoft, he says that one should add a risk premium on to the expected market rate of return. At least according to CAPM, you should add a risk premium that is a function of the systematic risk (beta) to your risk -free rate. One could also take issue with the use of the book value, but the approach seems flexible enough for that. Personally, I prefer a simplified cash-flow projection approach. But the key thing is to have some disciplined approach to the forecasting problem that reflects the inability of every tree to grow to the sky. This guy does that. Now if I were to write a book about valuation I would make it broader than just DCF analysis. I would include sections on relative valuation using various multiples, and contingent valuation (options). But for what this book appears to be (and remember I did not read and evaluate the book, only the web site that promotes the book) I have to say "Good Job! You have escaped with only a minor potshot." This book does NOT qualify for this thread. Now, Chuzzlewit, did YOU want to attack it?