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Strategies & Market Trends : Free Cash Flow as Value Criterion -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (90)	11/2/1997 3:49:00 PM
From: Pirah Naman	Respond to of 253

Andrew: Your clarifications makes sense; we are doing the same thing. However I do perceive one area in need of clarification: Going from most selective to least selective: 1) Buffett quick test 2) method of "next few years" :-) 3) Buffett method - Andrew method All of them are the same in the process. The selectivity shows up in how quickly the company is required to beat the discount rate. With the normal Buffett method, which I am interrpeting your to be identical to, many more companies will pass the hurdle. As you say, if you assume the zero growth your method would return same result as mine, so the selectivity I perceive comes from my interpretation that you aren't doing that. Anyway we have beat this to death; I think it safe to say that we are in agreement and that we are doing essentially thesam4e thing. Pirah