Sun, Dec 21, 2014, 3:32 AM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Berkshire Hathaway Inc. Message Board

  • Rickson9 Rickson9 Jul 7, 1998 2:48 PM Flag

    re: ignoramus

    "That definition of earning power assumes that an
    enterprise would be simultaneously liquidated _and_ continue
    to earn money, which is clearly
    impossible."

    Is this a joke? Are you serious?

    When
    Charlie Munger added his company's year 0 equity value in
    his intrinsic value calculations for Wesco, he wasn't
    thinking of
    liquidating his company.

    The fact of
    the matter is, when you are determining the worth of
    a business, it's assets (net outstanding
    liabilities; that's long-winded for equity btw) account for
    part of it's intrinsic worth. If you didn't understand
    cash as having a present value then I don't expect you
    to understand this.

    Borrowing from Peter
    Lynch, as a business, YOU would be worth 1) your yearly
    salary plus 2) your equity stake in anything you owned
    or partially owned minus 3) all outstanding debt.
    That doesn't mean you're going to go out the next day
    and sell your car or house. Is that a bit clearer
    now?

    Actually, I don't really care anymore. You obviously have
    different ideas about intrinsic value than both Charlie
    Munger and Warren Buffett. Brkrules has better ideas
    than what you're presenting here.

    Who are you
    anyway? There is no possible way you could be a business
    major or have a degree in any math-related field. If
    you are, I would be extremely interested to know what
    school you went too.

    No offense, but you seem to
    make up crap as you go without point to sources or
    anything. "Sitting cash has more value in Buffett's hands
    than in other people's hands", "liquidation value has
    no importance" blah blah. You just throw out
    senseless opinions. That's it. Liquidation value has no
    importance? This is a new one. It would be interesting to see
    you sit in front of Philip Fisher, Peter Lynch or
    Warren Buffett with these ideas. I'm not sure if they
    would throw you out of the room or laugh in your
    face.

    This will hopefully be the last time I will explain
    anything to you. It is quite apparent that you make up
    arguments based on your own 'reasoning' without any back up
    from any annual reports, Buffett's letters, texbooks
    or any form of reading material.

    Whatever.
    Listen to Brkrules. Brkrules presents more logical
    reasoning than you do. How old are you
    anyway?

    Cheers,
    JimC
    The Toronto Investment
    Club
    http://torontoinvest.ndsn.com

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • You guys in the Toronto Club seem to have good
      data. Can you tell me what percentage of Brk is made up
      of Geico. It seems that we're having weather events
      of historic proportions these last few years and
      that's got to be reflected in a bottom line somewhere. I
      enjoy your web site.

    • Jim, I will answer your substantive points in
      another message.

      <<<No offense, but you
      seem to make up crap as you go without point to
      sources or anything. "Sitting cash has more value in
      Buffett's hands than in other people's hands", "liquidation
      value has no importance" blah blah. You just throw out
      senseless opinions. That's it. >>>

      Jim, I
      attempt to derive my conclusions from definitions and
      assumptions. Perhaps sometimes I fail, hopefully sometimes I
      manage to get it right. The value of such conclusions is
      that they are new and hopefully useful. If I limited
      my thinking to only citing Warren Buffett and
      Hagstrom, then there would be no thinking process, but
      rather some kind of religious
      process.


      <<<Liquidation value has no importance? This is a new one. It
      would be interesting to see you sit in front of Philip
      Fisher, Peter Lynch or Warren Buffett with these ideas.
      I'm not sure if they would throw you out of the room
      or laugh in your face.>>>

      It might
      have importance, no doubt about that, it is just that
      in certain situations it is not appropriate as the
      terminal value.

      <<<Who are you anyway?
      There is no possible way you could be a business major
      or have a degree in any math-related field. If you
      are, I would be extremely interested to know what
      school you went too.How old are you
      anyway?>>>

      Jim, for the purposes of this discussion, assume that
      I am a 18 year old high school dropout. I do not
      think that credentials matter at all. I would much
      rather discuss substance than try to win arguments by
      flashing credentials. I have seen a good number of
      graduates from business schools who said amazing nonsense,
      so a good education is not a guarantee of clear
      thinking. (not that lack of education is any useful either)

 
BRK-A
227,886.00-1,414.00(-0.62%)Dec 19 4:01 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.