"There are so many factors involved that it is never wise to attempt to judge intrinsic value to the last eighth or even point." Phil Fisher "Valuation of a business is - it’s not reducible to any formula where you can actually put in the variables perfectly." Warren Buffett “ No number, on its own, can capture valuation.” Mark Urquart "There's no such thing as precise intrinsic value." Mohnish Pabrai “It is better to be approximately right, than precisely wrong.” Warren Buffett "Do not try for a pin-pointed mathematical approach that creates an illusory certainty out of an unknowable future." T Rowe Price The decision should be obvious." Charlie Munger "We never sit down, run the numbers out and discount them back to net present value. "It's always difficult to rule out something beyond the reach of your equations." Brian Greene “We’d argue there’s a lot of false precision in our business and that the best investments don’t require a financial model that goes out five significant digits.” Ira Rothberg "Business value is a soft number: in our own case, two equally well-informed observers might make judgments more than 10% apart." Warren Buffett You just don’t want to imagine that within a tenth of a percent or a nickel a share or even a dollar a share that you really can have that much precision." Chris Davis So what we tend to come up with are what we call ranges of fair value. You have an enormous amount of uncertainty that you have to price in. There’s just amazing false precision in that. "When we look and value a business, we don’t come out with an estimate that, you know, company X is worth $34 a share. “Any attempt to value businesses with precision will yield values that are precisely inaccurate.” Seth Klarman We just see something that obviously is better than anything else around that we understand - and then we act." Warren Buffett "If you need to use a computer or calculator to make the calculation, you shouldn't buy it.It should scream at you.we do not sit down with spreadsheets and do all that sort of thing. “The reason our ideas haven’t spread faster is they’re too simple.” Charlie Munger the various factors involved may be so conflicting that the conclusion finally drawn is no better than a snap judgement would have been." Garfield Drew, 1941 " Simplicity or singleness of approach is a greatly underestimated factor of market success. As soon as the attempt is made to watch a multiplicity of factors even though each one has some element to justify it, one is only too likely to become lost in a maze of contradictory implications. Whenever calculus is brought in, or higher algebra, you could take it as a warning signal that the operator was trying to substitute theory for experience." Ben Graham "In 44 years of Wall Street experience and study I have never seen dependable calculations made about common stock values, or related investment policies, that went beyond simple arithmetic or the most elementary algebra.
0 Comments
Leave a Reply. |