Restaurant in Intercontinental Hotel Kansas City

My Day In Pictures – Hiding In One of Kansas City’s Top Luxury Hotels, Enjoying Room Service, Going Over Stocks, and Playing with New iPads March 23rd / 24th, 2011

Last night, I realized that I needed to take a trip to the local Charles Schwab & Company branch office to turn over a framed Berkshire Hathaway Class B certificate that we had on the office wall for a few years as decor because the stock split 50-1 and the transfer agent had been continually…

A Technique for Comparing the Intrinsic Value of Two Stocks

A Technique for Comparing the Intrinsic Valuation of Two Stocks

One technique I find helps a lot of investors act more rationally is one I developed during my late teenage years.  I would convert all companies I was analyzing to $100 per share to make comparison of the figures and yields easier.  In essence, this allowed me to ask the question, “How much profit am I buying for every $100 I put into this company?”  If I paid a high multiple for a particular business, it forced me to justify the higher valuation by writing down my reasons for my belief.