In this interview with Carol Loomis at Fortune MPW, Warren Buffett explains that a good business earns a high return on tangible assets, whether it grows or not. However, overpaying can turn a good business into a bad investment. He acknowledges his early mistake of buying cheap, underperforming businesses, which … Read More
Joel Greenblatt: The Simplest Way To Think About Business Valuation
In this interview with Barry Ritholz, Joel Greenblatt defines value investing as determining a business’s worth and paying significantly less, rather than relying on traditional metrics like low price-to-book or price-to-sales ratios. He argues that true value investing focuses on future cash flows and intrinsic business value, not stock market … Read More
Chris Davis: Stock-Picking Strategies for a Disconnected Market
In his recent interview with Barron’s, value investor Chris Davis discusses two key investment questions: the type of businesses to own and the price to pay for them. Viewing investments as business acquisitions, not just stock purchases, Davis highlights evaluating liabilities, undervalued assets, and long-term durability over short-term gains. He … Read More
Warren Buffett: Why CEOs Struggle with Business Valuation
During the 2001 Berkshire Hathaway Annual Meeting, Warren Buffett highlights a common issue among CEOs who struggle to assess the value of businesses they aim to acquire. Feeling unsure about asset allocation, they often turn to investment bankers for advice. However, this advice is typically biased, as investment bankers are … Read More