#WarrenBuffett on the Most Important Investing Statistics | 'If I could only PICK ONE STATISTIC...'

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Legendary investor, Warren Buffett shares the most important statistic for successful investment during Berkshire Hathaway's Annual Meeting
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Huh? But interest rate would just be the risk free rate. The discount rate would need to be the cost of equity (or WACC if you're valuing the whole firm) that appropriately compensates you for equity risk. It would be higher than just the interest rate. If we discounted our stocks with just the interest rate, our estimate of intrinsic value would be biased upwards.

But I also read that old school guys especially pre-Markowitz just slap on the risk-free rate as the interest rate cuz CAPM wasnt around in their time

armitageshanks