Jae Jun

Warren Buffett's Stock Portfolio: Part III

Hi Richard,

Can you show me where you got the formula
price = sqrt of (22.5 * P/TB * EPS)?

Im using the formula as defined in the intelligent investor.


On Sep 25 10:51 AM Ricard wrote:

> BTW, complete formula is price = sqrt of (22.5 * P/TB * EPS). Since
> PG has no tangible book value, this number is meaningless.
>
> This has in fact been the one number that has prevented me from buying
> the vast majority of US blue chips, which by this metric are way
> over valued. This is balanced by your CROIC calculations.

Warren Buffett's Stock Portfolio: Part III

The free morningstar trial was actually last year but I got to look at how they did things and yes, my spreadsheet will calculate the fair value of any company as long as the data is available.

Thanks for your resources. Taking a look at it now.


On Sep 01 12:27 PM JeffDB wrote:

> Hi,
>
> Actually, my library offers the premium service via their electronic
> resources. I noticed on one of your pages www.oldschoolvalue.com.../
> that Morningstar was offering free premium service through Nov 21st,
> btw.
>
> In any event, I do like the Morningstar info as their analyst reports*
> have a lot of good info to go along with the estimated fair value,
> but they don't have the reports or even the est fair value for quite
> a few companies that they do not follow for whatever reason. I'm
> assuming your spreadsheets will still calculate DCF for a lot of
> those companies that Morningstar doesn't follow even though you are
> pulling the raw numbers from Morningstar, is that correct? ie. small
> caps or others?
>
> * FWIW, here is one page of a Morningstar report on PG: www.mediafire.com/down...
> One could access to all the rest of their info on PG or other companies
> via that free trial, though, assuming it is still active.
>
> Also the tiny spreadsheet I slapped together for the DCF / Morningstar
> chart is available here: www.mediafire.com/down...
>
>
> Anyway, thanks again for these posts and those spreadsheets etc.
>
>
> On Sep 01 01:09 AM Jae Jun wrote:

Warren Buffett's Stock Portfolio: Part III

Hi Jeff,
I've back tested my valuation methods with Morningstar and found to get very similar results.

How did you go about doing the comparison?
I assume you have the premium service?

Warren Buffett's Stock Portfolio: Part III

@long on oil
Thanks for reading and commenting.

@johnmorrison
yup. Price is what you pay. Value is what you get.

@hksche2000

No worries. Always meant to take a deeper look at what Buffett buys but never got around to it until now.

@ex-bond
I don't know about the "poison" remark but I do wonder why he doesn't sell some companies that obviously aren't that great.
I'm sure even his investments change but he never seems to be a seller or re-organizes his portfolio.

@mkreisel
I'm not an expert in pharma so I'll take your opinion.

Warren Buffett's Stock Portfolio: Part I

Thanks Burton.

I don't have a book but there are plenty more articles which Im sure you will enjoy.