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Hollyshiit · 03-18-2010, 10:23 PM

^
ok, lets be specific.

you must do valuations before buying into these companies? I mean if you buying into a company, you must think it is under value / attractive to you at its current selling price, or else u would be speculating right?? Which method of valuation do you mostly use to determine the intrinsic value of the company ur buying and ur margin of safey?

Do you use Discounted cash flow, net asset valuation or earnings power valuation more often? or any others that i have missed?

and as you stated above, buying a company that you can hold for many years.. but you see, we are not Warren, 1.Its hard for us to determine if the company of choice can keep up its durable competitive advantage. What method do you use to determine if the company of choice sells product or services that can sustaine its earnings growth and competitve advantage

2. most companies with that sustainable competative advantage are already over-priced. trading in between 20-30x price/earning and like 3 times BV with top n bottom line growth of only 8-12 % annually ,

how do you know ur not over paying for the future growth of these companies??

03-18-2010, 10:23 PM	#3
Hollyshiit Banned (ABWS) Join Date: Nov 2005 Location: Vancouver Posts: 256 Thanked 5 Times in 5 Posts Failed 9 Times in 1 Post	^ ok, lets be specific. you must do valuations before buying into these companies? I mean if you buying into a company, you must think it is under value / attractive to you at its current selling price, or else u would be speculating right?? Which method of valuation do you mostly use to determine the intrinsic value of the company ur buying and ur margin of safey? Do you use Discounted cash flow, net asset valuation or earnings power valuation more often? or any others that i have missed? and as you stated above, buying a company that you can hold for many years.. but you see, we are not Warren, 1.Its hard for us to determine if the company of choice can keep up its durable competitive advantage. What method do you use to determine if the company of choice sells product or services that can sustaine its earnings growth and competitve advantage 2. most companies with that sustainable competative advantage are already over-priced. trading in between 20-30x price/earning and like 3 times BV with top n bottom line growth of only 8-12 % annually , how do you know ur not over paying for the future growth of these companies?? Last edited by Hollyshiit; 03-18-2010 at 10:33 PM.