In the Chairman’s Letter of 1992 from Warren Buffet I found this small excerpt on his view about value, growth and using discounted cash-flow analysis. I felt like the writing must have light shed on it and be shared with others as it resinated with me, as does most of Buffett’s writings and insight. I […]
Tag: book value
What is intrinsic value
“Book value tells you what has been put in; intrinsic business value estimates what can be taken out. “ Buffett: Chairman’s Letter – 1983 – Berkshire Hathaway, Inc. Link: http://www.berkshirehathaway.com/letters/1983.html Now let’s focus on two terms that I mentioned earlier and that you will encounter in future annual reports. Let’s start with intrinsic value, an all-important concept that […]