Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (37985)	5/22/2010 7:52:15 AM
From: Madharry	Read Replies (1) \| Respond to of 78464

I dont look at that way at all paul. what i do is value those assets under management at 2% giving it a value of $16 or so and then i added that to the state book value of the the company which is a bit over $122 i think. By comparison LM has enterprise value of $5bilion but negative tangible equity of - $600 million. Im projecting that they will earn $5 for the next quarter and i come up with my adjusted bv of $143. Despite all the current warts on GS this is far and away the best company in its field, and buying it at book for is like turning some of my money over to one of the best money managers to take care of, thinking that its very likely they will continue to make 14-16% on this money over time. Now someone I know who is very smart just doesnt believe the book value that is on GS's financial statement but he cant substantiate it. He just believe's that its in GS's employees best interest to overstate book so that they can pull as much employment compensation out of it. I just see this purchase as like the opportunity to buy philip morris when it went sub $20 years ago.