Shrenik Bachhawat on LinkedIn: Why Warren Buffett never calculates a DCF (2024)

💰 Valuation masterclass from the Lord itself!! 💰 Warren Buffett on how to find the intrinsic value of a company!Ever wondered how great investors like Warren Buffett decide what to buy? It’s all about knowing the intrinsic value—the real worth of something.Imagine you have a magic box that gives you ₹100 every year. Even though it’s just ₹100 at a time, those rupees add up over the years. Now, if you wanted to buy this box today, how much would you pay?That’s where intrinsic value comes in. It’s figuring out how much all those future rupees are worth right now. This helps you know what something is truly worth.Understanding intrinsic value can help you make smarter investment decisions by focusing on what really matters.Equivaluesearch (Thank you for insights)#Investing #IntrinsicValue #SimpleFinance #WarrenBuffett #SmartInvesting

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Forecasting equity returns is difficult, possibly impossible. But historic data and valuation go some way to defining the predictability of returns, as Mergence CIO Brad Preston describes.Read more here: https://lnkd.in/dXR_4d5VClick here for weekly snippets in your inbox: https://lnkd.in/dy5fY3bh#MergenceInvestmentManagers #Investments #equityreturns #finance #mergencemarketsnippets

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These 10 pieces of advice have transformed an insecure and anxious aspirant into a better investor:1. Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.2. The stock market is filled with individuals who know the price of EVERYTHING, but the value of NOTHING.3. The four most dangerous words in investing are: “This time it's different.”4. In the short run, the market is a VOTING machine, but in the long run, it is a WEIGHING machine.5. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.6. Know what you own, and know why you own it.7. The investor's chief problem—and even his worst enemy—is likely to be HIMSELF.8. The big money is not in the buying and selling, but in the WAITING.9. Don't look for the needle in the haystack. Just buy the haystack!10. The way to make money is to buy when blood is running in the streets.Peter Lynch once said, "Gut is the most important organ that you need when you invest and not your brain."His famous quote isn't referring to overconfidence being a substitute to make smart investment decisions, but to stick with your portfolio even in uncertain and volatile times.Which of the above-mentioned investment advice did you like?For more stock analysis and in-depth DCF valuation reports, visit https://lnkd.in/g7zfw7m9#StockMarket #Investment #InvestmentTips #FamousQuotes #StockTrading #Trading #TradingTips #TradingQuotes #CFA #PortfolioManager #FinancialAnalysis #StockAnalysis #CaseStudy #QuantitativeAnalysis #CFA #InvestmentManagement #InvestmentBanking #ValueInvesting #FinancialServices #IntrinsicValuation #CFO #CIO

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Navigating the economic terrain requires vigilant consideration from fund managers. As we step into Q4 2023, the intricate path to exit private markets poses challenges that may influence valuation decisions. Read more on the critical aspect of valuation write-downs in EisnerAmper’s blog: https://okt.to/i3SH1u

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See below for our Spring 2024 Growth Equity Valuation U.S. Snapshot. Read more here: https://lnkd.in/dzbvDCuBThe publication includes an overview of trends in the venture and growth equity market, including fundraising activity, cash flows, valuation considerations, and a closer look at secondary transactions and their implications on fair value reporting. Contributors include Siwen (Rebecca) Hu Ian Coffman Masa Noggle, CFA, CAIA Erik Antonson Mustafa Azhar, CFA Michael Chiu.#privateequity #growthequity #portfoliovaluation #secondarymarket

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Valuation is a critical aspect of investing. At MBM Capital, we believe that it's more of a science than an art. We tend to approach valuation by focusing on the physics of a business model. For instance, businesses with a business model and balance sheet similar to a specialty finance company or a bank will ultimately be valued at Price to Book, which itself will depend on return on equity and the volatility of the ROE. And while it's true that you can escape gravity, it's a rare feat (about 700 people have made it to space in case you were wondering!).#Valuation #Investment #MBMCapital Lauren Bonner Jonathan Jetmundsen

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Holding cash in a portfolio is a subject of much debate, with its pros and cons. However, it plays a crucial role in risk management and seizing market opportunities. While cash may limit returns in a bull market, it acts as a cushion during market downturns, enabling investors to purchase high-quality stocks at discounted prices. This strategy is especially advantageous for retirees, providing a buffer for stable income amidst market volatility. By maintaining an opportunistic cash reserve, investors can achieve a well-balanced approach, enhancing returns with minimal added risk. Brian Haughey, CFA, FRM, CAIA's insightful analysis in the AAII Journal highlights the strategic importance of cash allocations in today's market.#InvestmentStrategy #PortfolioManagement #RetirementPlanning #FinancialRisk #MarketOpportunities #CashAllocation #FinancialPlanning #RiskManagement #StockMarket #Finance #WealthManagement

In any environment, it is critical that fund managers consider when valuation write-downs might be necessary for investments in their portfolios. Check out these key factors: https://okt.to/qGRQoi #valuation #writedowns #portfolio #investment

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IRR. Internal Rate of Return. 𝗞𝗶𝗻𝗴 𝗼𝗳 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗲𝗾𝘂𝗶𝘁𝘆 𝗺𝗲𝘁𝗿𝗶𝗰𝘀. 👑Complex and difficult to grasp.When we've created content about IRR in any context, it's always been extremely popular. 🔥 It appears there aren't many explanations out there that are understandable, but still manages to thoroughly explain the metric and its complexities. Not to mention the misunderstandings that surround it.If you want to truly understand IRR, read our latest article that breaks it down for you and provides you with a thorough understanding of the popular metric.So, find your inner nerd and a cup of coffee, and spend your next 10-15 minutes in our knowledge hub getting smarter. 🤓 ___________________________________During these weeks, we're sharing a series of articles on private equity.(And we may give you a present along the way. 🎁)To get notified when we share our next private equity article, hit the bell 🛎 in the top right corner of our profile.You can also hit the three dots in the upper right corner and save this post for later.#privateequity #privateequitymetrics #irr #internalrateofreturn #privateequityreporting

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2023 brought a relatively sluggish year for M&A as macroeconomic conditions kept many key players on the sidelines. However,S&P’s latest analysispredicts that several factors may spur dealmakers into action in 2024.The decline in deal announcements and total value, observed since 2022, has been attributed to the impact of a rising interest rate environment, leading to increased financing costs and decreased equity prices. While expectations suggest that interest rates will remain somewhat elevated, an end to the Federal Reserve’s hiking cycle will improve the M&A outlook.Hunt Scanlon Ventures’ managing director Cody Crook unpacks what it all means for dealmaking in the human capital market for this year >> https://lnkd.in/eJfJKEt9

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