SI
SI
discoversearch

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: Graham Osborn who wrote (57700)8/6/2016 12:13:50 PM
From: Graham Osborn  Respond to of 78673
 
*really* -> *rarely*



To: Graham Osborn who wrote (57700)8/7/2016 11:46:49 AM
From: bruwin  Read Replies (2) | Respond to of 78673
 
" ... is they require too many assumptions"

Yes, indeed.

And the most important assumption is one's choice of a forward Interest Rate. When that is out, then it's Garbage In, Garbage Out from the mathematical equation.

With Buffett's "Equity Bond" equation of Pretax Earnings(for 12 months)/Long Term Corporate Bond Rate, he uses a 10 Year AAA Corporate Bond Rate.
(See :- finance.yahoo.com )