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Berkshire Hathaway Inc. Message Board

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  • astral_tsar astral_tsar Dec 11, 2003 11:21 PM Flag

    PV of Future Cash Flow

    spameggsspam -- Cool

    The step was the same deal for me, yours is right too. I just collected NPV terms on the left and factored NPV out. (It's a combo of steps that I used to use ad nauseam in another era.)

    On the "E", yeah, everything is for a $1 per year cash stream. E of those streams are worth E*NPV.

    With apologies, here's a warning that I'm sure you don't need ... I like math. But in the jungle of investing, of course, 98% of the problem ain't analysis. The hard part is finding a predictable and underpriced cash stream in the first place, without BECOMING such a prize yourself. It's a jungle out there, and you're not the only one who's hungry. Lots of investors, especially these days, seem to assume that they're at the top of the food chain. Don't.

215,500.00-100.00(-0.05%)4:00 PMEDT