Comments on: What is a Company Worth? http://www.goodevalue.com/2007/10/what-is-a-company-worth/ It may be cheap, but is it a Goode value? Sun, 16 Oct 2011 22:06:46 -0400 http://wordpress.org/?v=2.8 hourly 1 By: GlennC http://www.goodevalue.com/2007/10/what-is-a-company-worth/comment-page-1/#comment-1324 GlennC Sat, 05 Sep 2009 06:45:17 +0000 http://www.goodevalue.com/2007/10/23/what-is-a-company-worth/#comment-1324 I agree with valuing companies based on expected future cash flow, but I think there are times when you have to value it based on take-over value. Sometimes, assets are more valuable when managed by somebody else. 2- If there is enough insider stealing going on, perhaps book value is a terrible way of valuing the company. 3- One of the things that helped Warren's performance was when he started investing in *good* companies over merely cheap. Because it can take years for the low P/B companies to be fairly valued, it can be better to own good companies which compound their value well. If it does take years for the market to recognize the value of that company, it will be worth more when that happens. I agree with valuing companies based on expected future cash flow, but I think there are times when you have to value it based on take-over value.

Sometimes, assets are more valuable when managed by somebody else.

2- If there is enough insider stealing going on, perhaps book value is a terrible way of valuing the company.

3- One of the things that helped Warren’s performance was when he started investing in *good* companies over merely cheap. Because it can take years for the low P/B companies to be fairly valued, it can be better to own good companies which compound their value well. If it does take years for the market to recognize the value of that company, it will be worth more when that happens.

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