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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (17385)7/10/2003 3:18:23 PM
From: Tomato  Read Replies (1) | Respond to of 78954
 
Nobody seems to want to answer this question:
Message 19097783

Let me ask a simpler (?) question:

Assume you have a 25 million bucks with which to buy a company. Would buying a company increase the value of your 25 million, since it would be bringing in future profits (and you're making less than 1% in a money market now)? If so, how would you calculate the worth? I assume buying a co. with a high growth rate of ROE would get you less company that the opposite...but is there anyway of taking a stab with those facts as to how much you'd be increasing the worth of your 25 million?

Thanks, anyone!