valuation methods Quotes

Market value is irrelevant to intrinsic value. ... Unqualified judgment can at most claim to decide the market-value - a value that can be in inverse proportion to the intrinsic value.

You must value the business in order to value the stock.

Investment students need only two well-taught courses - How to Value a Business and How to Think About Market Prices

I mean, you can explain the fact that these are depressed prices, you know. We think these assets are going to be worth a lot more. And I think that case can be made in certain situations. But I think to just say, you know, we're going to say a dollar of cash is worth $2 all of a sudden, it isn't worth $2. It's worth a dollar today.

Growth and value investing are joined at the hip.

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble. As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don't know exactly when the bubble will pop, it eventually will.

Black-Scholes is a know-nothing system. If you know nothing about value - only price - then Black-Scholes is a pretty good guess at what a 90-day option might be worth. But the minute you get into longer periods of time, it's crazy to get into Black-Scholes. For example, at Costco we issued stock options with strike prices of $30 and $60, and Black-Scholes valued the $60 ones higher. This is insane.

A lot of people disagree with me on this, I believe in mark to market.

Managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation.

If the only tool we use to analyse what's valuable is a price tag, then those things that don't have price tags begin to look like they have no value.

There is no perfect mathematical formula for pricing a business.

Market price, while used exclusively to value our investments in minority positions, is not a relevant factor when applied to our controlling interests.

Valuing a business is part art and part science.

In one way, I'm sympathetic to the institutional reluctance to face the music. I'd give a lot to mark my weight to 'model' rather than to 'market.'