The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Foolish Collective

URL:  http://boards.fool.com/i-agree-that-there-are-significant-accounting-21726660.aspx

Subject:  Re: Selecting stocks the Ben Graham way Date:  12/9/2004  9:53 AM
Author:  RaplhCramden Number:  34785 of 46814

I agree that there are significant accounting rule problems associated with book value. That's why an adjusted book value should be used, but that's not so dissimilar to the problems with reported earnings, is it.

You and SNS might enjoy, if you haven't already, the book "Value Investing from Graham to Buffett and Beyond" http://www.amazon.com/exec/obidos/tg/detail/-/0471381985/102-9609822-5688922?v=glance

They go through numerous scenarios in which you start with book and make adjustments to come up with about 3 different estimates of the value of a company.

Book explicitly DOES NOT include Intellectual Property, which is almost certainly the most important asset of most of the modern high growth companies. But this is my bugaboo, not the books, they talk about lots of different adjustments.

R:)ph
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us