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Michael Mauboussin, Counterpoint Global – Everything Is a DCF Model (The Best Investment Writing Volume 6)

The Meb Faber Show - Better Investing

CHAPTER

Private Markets - What You Need to Know

The founder, buyer or holder of a business anticipates satisfactory returns based on the company's tributable cash flows over time. If you buy a stock at a price less than its perceived ue, you are essentially travelling into the future and judging that to day's expectations for future cash flows are too low. Investors in private markets expect an illequidity premium, a little extra return to pay them for the inability to transact cheaply. But future cash still determine the value of the underlying assets.

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