Deef

Why Buffett Would Not Buy Google

Finally someone who looks at DCF from a critical point of view. DCF is a very good technique, but as mentioned in the article, the result of your DCF is 100% dependent of the input. DCF is based on estimates and to do a good DCF, you have to be able to make good estimates. In a volatile and unpredictable sector like the tech sector and especially the Internet sector it is just so much harder to make correct estimates. The odds that a DCF analysis on the internet sector equals garbage in garbage out are far greater than those of a DCF analysis on lets say the transportation industry. Especially the Garbage in Garbage out concept is very often forgotten!

Markets Look Set Up for an Ugly Fall

Down a 1000 points? That's 10%! Are you talking short term or mid term?