If you don't feel competent to make a good guess, then you probably don't know the company well enough. And that' that comes from understanding the business well enough to be knowing that you're in the ball park here. So what you're looking for in our methodology of doing the tin cap is a pre tax number that you can compare to a rental house that you own. Now, i would imagine in zeric it'ud be very, very difficult to find a house you could rent out and get ten % yield on your on your free cash floats coming off the house. I doubt you could buy houses like, completely impossible. You can still buy em here in georgia
You’ve done the initial Four Ms analysis of companies on your watchlist, but your work is not complete. The next step in the researching process is critical, and tells you whether or not the business is worth purchasing. Being at this point in your analysis means that you’re highly confident that the company is going to be larger and more productive in ten years. Today, Phil and Danielle discuss this next step in the research process, and cover how to calculate margin of safety using the ten cap valuation process.
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