It's interesting how quarterly projections are 'made' or arrived at, without much knowledge of cash flows.
It's also interesting how moods, sentiments and irrationality affect the price at which one can - theoretically - buy or sell a company, or rather, portions of a company.
It's amusing that professional fund managers are servants to the whims of investors in terms of unforseen or immediate events or limited time horizons; a typical case being that of a private equity fund. They typically have 4-7 years to get in and out of 'investments'.
Do I trust this Company's management based on what I can hear, see or judge?
Do I believe that this Company is interested in making its shareholders and employees richer over a period of time?
Do I largely understand what this Company does and how it is positioned to navigate through/ around obstacles?
Do I believe that this Company is going to do substantially better than most other companies over the long haul?
Do I believe that the price is to my liking?
Note: WB bought into KO in 1988. WB has bought into IBM over the last few months (2011) - USD 10.7 Bn worth of shares for a 5.5 % stake, 64 million shares.
It's also interesting how moods, sentiments and irrationality affect the price at which one can - theoretically - buy or sell a company, or rather, portions of a company.
It's amusing that professional fund managers are servants to the whims of investors in terms of unforseen or immediate events or limited time horizons; a typical case being that of a private equity fund. They typically have 4-7 years to get in and out of 'investments'.
Do I trust this Company's management based on what I can hear, see or judge?
Do I believe that this Company is interested in making its shareholders and employees richer over a period of time?
Do I largely understand what this Company does and how it is positioned to navigate through/ around obstacles?
Do I believe that this Company is going to do substantially better than most other companies over the long haul?
Do I believe that the price is to my liking?
Note: WB bought into KO in 1988. WB has bought into IBM over the last few months (2011) - USD 10.7 Bn worth of shares for a 5.5 % stake, 64 million shares.
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