Lessons to investors and managers by Warren E. Buffett
My Key Learnings :- Twitter: @shuchi_nahar Book Name: A few Lessons to investors and managers -from from Warren E. Buffett Book by : Peter Bevelin CHAPTER 1 & 2 The price you pay, determines the return you will get. According to Ben Graham, PRICE IS WHAT YOU PAY AND VALUE IS WHAT YOU GET. The return then received, can be compared with expected return from other opportunity. The value of any stock, bond or business today is determined by the cash inflow and outflow that are discounted at an appropriate rate. Individual needs to use the correct number, for example, proper discounting and that is the expected life of remaining assets. Buffet has precisely mentioned the bitter truth about money that, ‘It doesn’t matter from where the cash comes from, because in the end it will all be spent.’ Financial asset that has the highest value in comparison to its price is the one that gives the highest return. The investment that is derived from ‘Discounting Cash...