We Study Billionaires - The Investor’s Podcast Network cover image

TIP 001 : Warren Buffett Investing Basics (Investing Podcast)

We Study Billionaires - The Investor’s Podcast Network

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How Much Money Is This Small Business Making?

In invest ting, you'll typically hear things called a p e ratio. That's the multiple that's ten times the earnings or the profit that you're willing to pay for the company. So if i could make ten thousand dollars every year by owning this coffee shop, i would probably say something like a hundred thousand. I guess i would multiply it by ten. And when you're doing that on your main street, what do you really think about? How much is this company worth with all of its potential?

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