In 1997, during Berkshire Hathaway’s Annual Meeting, Warren Buffett stated that GEICO’s gain in intrinsic value is substantially greater than represented by the company’s reported earnings.
I think there is a typo in the example, in the calculation of the working capital. Should be 1,085 if I'm not mistaken. But I like the idea.
I wonder if, conceptually, it would be even better still if some sort of correction is made to account for growth in the "changes in working capital". To exclude the growth component of sales in here, in a similar way as the growth component of capex is excluded. But I have to streamline my ideas to be sure. Thoughts? :)
I think there is a typo in the example, in the calculation of the working capital. Should be 1,085 if I'm not mistaken. But I like the idea.
I wonder if, conceptually, it would be even better still if some sort of correction is made to account for growth in the "changes in working capital". To exclude the growth component of sales in here, in a similar way as the growth component of capex is excluded. But I have to streamline my ideas to be sure. Thoughts? :)
great take, thank you, keep it rocking!
Good read, informative.