Where behavioral finance meets operational excellence: Discovering quality businesses built to compound value across generations.
The art of business valuation: 3 Methods
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Picture this: You’re walking down Wall Street, and suddenly you have the opportunity to buy a business. Not just any business, but one that’s caught your eye for months. The owner slides a folder across the table and says, “Make me an offer.” How would you determine what it’s worth? This scenario isn’t as far-fetched as it might seem. Whether you’re investing in stocks, planning to buy a local business, or simply want to understand how the world’s top investors think, knowing how to value a business is an essential skill. As Warren Buffett, the Oracle of Omaha, famously said: “Investment students need only two well-taught courses – How to Value a Business, and How to Think About Market Prices.” Let’s embark on a journey through the three fundamental approaches to business valuation, each with its own story to tell...
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Qapital Insights
Where behavioral finance meets operational excellence: Discovering quality businesses built to compound value across generations.
Warren Buffett’s investment success stems from his methodical analysis of financial statements and his focus on long-term value creation. Today we will break down his approach using real-world examples and practical applications. Key principles: Focus on fundamentals over market sentiment Long-term investment horizon Understanding financial statements deeply Looking for sustainable competitive advantages Read more >>
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This week in our posts on the Kings of Capital, well-known investors providing us with valuable insights: Peter Lynch. Peter Lynch reshaped the scene at Fidelity's Magellan Fund. He took a modest $18 million portfolio and turned it into a staggering $14 billion between 1977 and 1990. The fund achieved an average annual return of 29.2%. His soaring win came from a straightforward investment approach that dedicated investors can learn and apply, not from complex financial models or...