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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (21322)	3/25/2000 11:51:00 AM
From: gdichaz	Respond to of 54805

Mike: Of course I will keep your seeing MF Mom as quiet as you have. :-) She was very helpful to me, especially, since in those days I was just beginning to climb my "networking" learning curve and had not branched out to wireless and fiber. Please pass on that she has a grateful person here (and roaming SI) who seconds your request she grace us with her presence. Agree that she would be a very valuable person to have here. A "resource person" in the politically correct jargon. Best, and respect. Cha2 PS You flatter me with the company you put me in. I'll just say thanks. (But then I did help you latch onto the Q, so some usefulness once) PPS And CTRAUT would be invaluable in the ongoing NT/Cisco/fiberoptics discussion among many subjects she knows well. (As I recall, she was particularly familiar with Lucent which perhaps needs an advocate). And a gracious person as a major bonus.

To: Mike Buckley who wrote (21322)	3/25/2000 7:17:00 PM
From: Curbstone	Read Replies (3) \| Respond to of 54805

Mike, As the thread's self-proclaimed valuation junkie I need to ask you to clarify something in the RFM. In Chapter 4 (Understanding the Stock Market) in the section entitled "What's the Future Worth?" starting on page 90 the RFM says: Let's suppose the promise is for a 15% return (for 10 years), and that I accept the offer. An accountant would say, Aha, if it takes $1.15 worth of future dollars to get one of today's dollars, then a future dollar is worth 100/115 of a present dollar, or 87 cents. That's the formula for the first year - discount the future dollar's value as 87% of a present dollar's value. I get completely lost here, math not being one of my stronger suits. I don't get the concept of discounting the future year's (and subsequent years) return. Is there some way you could unpack this idea into something a humble Lit major could understand? (Hint: being a right-brainer I do analogy real well) Added: Maybe I should clarify a little. I understand the concept of risk as discussed in following paragraphs, and how risk makes future dollars, well, riskier, or worth less. What I don't get is the straight 15% promised return = straight 15% discount year after year. Is this just a hypothetical or is this an actual rule of thumb/formula for valuing the worth of a promise? Also, how does this discounted cash flow analysis theory relate to actual attempts to value one investment over another? It seems pretty simplistic to really be of much practical use. Any thoughts? Mahalo, Mike