Valuing Assets Based on Future Cash Flows and Discounted Rates

This chapter explores the concept of valuing assets based on their future cash flows discounted at a certain rate. It discusses modern portfolio theory, Warren Buffett's perspective on price volatility and risk, and different ways to discount cash flows.

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Kyle Grieve chats with Robert Hagstrom about the benefits of reading fiction for improving your investing process, the best mental models Robert learned from his time working with Bill Miller, the importance of understanding complex adaptive systems for understanding the market, how to use the DCF model according to Buffett and Munger, strategies for using multiple mental models in your day-to-day life to think better, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

03:48 - The Lessons from 3 of fiction's best detectives that will make you a better investor.

10:16 - Insights from investments in Dell Computer and Amazon.

10:37 - Why you should look at the market through a biological model over a physics-based model.

10:37 - The importance of network economics in a digital age.

26:55 - Ways to improve efficiency from books that you read.

38:10 - Interesting data points on the advantages and disadvantages of a concentrated portfolio.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Buy a copy of The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy here.
Buy a copy of Warren Buffett: Inside the Ultimate Money Mind here.
Buy a copy of The Detective And The Investor here.
Buy a copy of Investing: The Last Liberal Art here.
Buy a copy of The Warren Buffett Way here.
Related Episode: Listen to TIP360: Inside The Money Mind Of Warren Buffett w/ Robert Hagstrom, or watch the video.
Related Episode: Listen to MI222: How To Invest Like Warren Buffett w/ Robert Hagstrom, or watch the video.

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