![gregoryblotnick's tweet photo. "Everything Is A DCF Model" (Mauboussin)
most questions re: multiples vs. DCF are in here
even if u dont understand it 100% off the rip, thats fine, but the correct answer as to how assets are valued is in here
key sentence: "You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple."
applies for everything in learnings mkts/modeling etc
u have to earn the right to do it the short way, and u earn it by spending years doing it the long way. otherwise u are taking shortcuts that u dont understand
1. "However, a recent survey of professional equity analysts found that “market multiples” were “[b]y far the most popular approach to valuation” among nearly 2,000 respondents. Specifically, these analysts said that when valuing companies they used price-earnings multiples 88 percent of the time and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) multiples 77 percent of the time."
Each of these reasons helps explain why DCF models are not used more widely, but none of them stand up to scrutiny. Even if you choose not to build a DCF model for every investment you make, it is useful to keep in mind the factors that drive value. These include growth from investments that earn in excess of the cost of capital, the competitive advantage or uniqueness of a business that keeps competitors at bay, and the opportunity cost of capital. You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple.
Buffett: “ . . . the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.). The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was ‘a bird in the hand is worth two in the bush.’ To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum value of the bush— and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.”
https://t.co/w8MO8MkOqt](https://pbs.twimg.com/media/HPU-SzqXYAAo9Au.jpg)
![gregoryblotnick's tweet photo. "Everything Is A DCF Model" (Mauboussin)
most questions re: multiples vs. DCF are in here
even if u dont understand it 100% off the rip, thats fine, but the correct answer as to how assets are valued is in here
key sentence: "You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple."
applies for everything in learnings mkts/modeling etc
u have to earn the right to do it the short way, and u earn it by spending years doing it the long way. otherwise u are taking shortcuts that u dont understand
1. "However, a recent survey of professional equity analysts found that “market multiples” were “[b]y far the most popular approach to valuation” among nearly 2,000 respondents. Specifically, these analysts said that when valuing companies they used price-earnings multiples 88 percent of the time and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) multiples 77 percent of the time."
Each of these reasons helps explain why DCF models are not used more widely, but none of them stand up to scrutiny. Even if you choose not to build a DCF model for every investment you make, it is useful to keep in mind the factors that drive value. These include growth from investments that earn in excess of the cost of capital, the competitive advantage or uniqueness of a business that keeps competitors at bay, and the opportunity cost of capital. You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple.
Buffett: “ . . . the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.). The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was ‘a bird in the hand is worth two in the bush.’ To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum value of the bush— and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.”
https://t.co/w8MO8MkOqt](https://pbs.twimg.com/media/HPU9tsZXQAA48HZ.png)
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Kim Clijsters on Alcaraz:
"That pic of him walking out after a heartbreaking loss, and having a full blown smile. His chin was up, full smile, he had one of the most positive press huddles afterwards. It gives me chills thinking about it. What a gift he's to the sport of tennis"
I’ve watched this video a 100 times now
طبيب روسي قام بإعداد تمارين خاصة للتخلص من آلام الظهر والدسك من دون الحاجة للجراحة .
15 دقيقة يوميا كفيلة بعلاج ألم ( الظهر والدسك ) بمشيئة الله..
People keep misunderstanding this. I CONTRIBUTED to Bostrom’s Superintelligence book and he thanks me by name in the foreword.
I was thinking about AI safety long before 2014.
Who to follow
M Venkatachari
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[email protected] and hubber @ https://t.co/F0y4ZmM6yS Lover of books, news articles, TV serials, cricket, music, and nature.
Rudra 🇮🇳
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For the faith that made a nation and the nation that kept the faith.
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Squeak Skeezak
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#LONGLIVETHEGUYS #2600
The future has arrived.
Thursday, September 3, 2026.
The day the steering wheel went away.
@robotaxi Cybercab Cybercab Cybercab
Kharab actor sirf hero ban sakta hai Says Javed Sahab
Agar aap logo ko pata chale ki yaha par kis hero ki baat chal rahi hai toh jaroor batayein 🥲
#JavedAkhtar 😂
It will be quite something to see Cybercab flood our cities. The dam is about to burst.
It will be the iPhone moment for autonomy. The rest will feel very flip phone.
Building a business for scale is hard. Robotaxi was never designed to simply beat Waymo by a few thousand cars. It wasn't even planned as just another competitor.
The plan was always much bigger: to fundamentally change the autonomy landscape— and transportation as we know it.
Yes, let’s GO!
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Bookmark it!!
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Do read
Carnelian just did something most fund managers avoid🚨
They wrote a full letter on their own mistakes.
7 years in. Real money. Real names. Real lessons.
Here's the framework + case studies every investor should steal 🧵
Please bookmark and retweet :)
Timing the Market is injurious to financial health. As per data of 21 years, investors who stay invested are better off than those who try to time their entry & exit because missing even only a small fraction of the market's best-performing days drastically diminishes CAGR return
SpaceX just posted a 29 minute all-hands meeting that Elon Musk had with employees recently.
"Everything Is A DCF Model" (Mauboussin)
most questions re: multiples vs. DCF are in here
even if u dont understand it 100% off the rip, thats fine, but the correct answer as to how assets are valued is in here
key sentence: "You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple."
applies for everything in learnings mkts/modeling etc
u have to earn the right to do it the short way, and u earn it by spending years doing it the long way. otherwise u are taking shortcuts that u dont understand
1. "However, a recent survey of professional equity analysts found that “market multiples” were “[b]y far the most popular approach to valuation” among nearly 2,000 respondents. Specifically, these analysts said that when valuing companies they used price-earnings multiples 88 percent of the time and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) multiples 77 percent of the time."
Each of these reasons helps explain why DCF models are not used more widely, but none of them stand up to scrutiny. Even if you choose not to build a DCF model for every investment you make, it is useful to keep in mind the factors that drive value. These include growth from investments that earn in excess of the cost of capital, the competitive advantage or uniqueness of a business that keeps competitors at bay, and the opportunity cost of capital. You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple.
Buffett: “ . . . the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.). The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was ‘a bird in the hand is worth two in the bush.’ To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum value of the bush— and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.”
https://t.co/w8MO8MkOqt
![gregoryblotnick's tweet photo. "Everything Is A DCF Model" (Mauboussin)
most questions re: multiples vs. DCF are in here
even if u dont understand it 100% off the rip, thats fine, but the correct answer as to how assets are valued is in here
key sentence: "You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple."
applies for everything in learnings mkts/modeling etc
u have to earn the right to do it the short way, and u earn it by spending years doing it the long way. otherwise u are taking shortcuts that u dont understand
1. "However, a recent survey of professional equity analysts found that “market multiples” were “[b]y far the most popular approach to valuation” among nearly 2,000 respondents. Specifically, these analysts said that when valuing companies they used price-earnings multiples 88 percent of the time and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) multiples 77 percent of the time."
Each of these reasons helps explain why DCF models are not used more widely, but none of them stand up to scrutiny. Even if you choose not to build a DCF model for every investment you make, it is useful to keep in mind the factors that drive value. These include growth from investments that earn in excess of the cost of capital, the competitive advantage or uniqueness of a business that keeps competitors at bay, and the opportunity cost of capital. You have to earn the right to use a multiple, which happens when you can demonstrate the link between value and the multiple.
Buffett: “ . . . the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.). The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was ‘a bird in the hand is worth two in the bush.’ To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum value of the bush— and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.”
https://t.co/w8MO8MkOqt](https://pbs.twimg.com/media/HPU-1icWIAAED9I.jpg)
In 2016, Morgan Stanley published a paper titled "The Equity Compounders".
"These compounders have generated superior risk-adjusted returns across the economic cycle".
🧵 Highlights from the paper:
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