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

To: Pirah Naman who wrote (39509)	2/20/2001 11:01:48 AM
From: hueyone	Read Replies (1) \| Respond to of 54805

Pirah, Thank you very much for your tutorials. I bookmarked your presentation and will set up a Pirah spreadsheet as soon as I have time. By the way, the columns all the way to the right on your last post did not quite come through with my netscape/SI combination, but I got the idea. This is basically the same stuff they were teaching when I was in grad school twenty five years ago, except I don't recall folks using the "free cash flow" terminology during that period. I know Buffet has a concept of expected "owner earnings" that he uses when he discounts future cash flows, but I have forgotten how he calculates it. I suspect Buffet's "owner earnings" is similar to "free cash flow", but likely includes some other adjustments Buffet applies to capture the unique situation of each business. If one subscribes to the theory that a stock is only worth what you would pay to purchase a business in its entirety when taking into account the business's future expected earnings available to owners, then your exercise makes a great deal of sense. Thanks, Huey