Month: August 2021

Assuming we bought high PE stocks 10 or so years ago with perfect foresight of their financial numbers, were they overvalued or undervalued at that time? Can a 25x PE stock be good value? Most traditional value investors would stay away from a 25x PE stock. How to Value Companies Let’s start by figuring how … Read more

Warren Buffett’s philosophy is investing in companies with a established record of success. In this video, we define great companies as those that deliver high owner earnings relative to the capital invested. Does it make sense to invest in these types of companies? Let’s check it out. To keep things simple, we’ll use cash flow … Read more