Discover and read the best of Twitter Threads about #greaterfool
Most recents (1)
1 New to investing?
2 Confused by #fintwit jargon?
3 Do we trust people presenting “valuation” to know what they don't know?
(Hint: “my-laser-eyed-golden-skin-ape-pic-is-worth-at-least-twice-your-diamond-skin-ape-pic” = relative pricing. Not valuation)
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1/X
2 Confused by #fintwit jargon?
3 Do we trust people presenting “valuation” to know what they don't know?
(Hint: “my-laser-eyed-golden-skin-ape-pic-is-worth-at-least-twice-your-diamond-skin-ape-pic” = relative pricing. Not valuation)
Follow #PiggyBack🧵
1/X
Equity = Assets - Liabilities
But what asset and liability values are we going to use?
The answer as always: it depends on what we are going to use it for.
Here is a summary of equity metrics, from the most conservative:
2/X
But what asset and liability values are we going to use?
The answer as always: it depends on what we are going to use it for.
Here is a summary of equity metrics, from the most conservative:
2/X
Price/”Net-Net” Working Capital (P/NNWC)
Classic Graham/Dodd strategy
Assumes: Use only most liquid current assets, deduct subjective discounts.
Conditions (often missed in screens):
1) Not consuming assets (melting ice cube/negative cash-flow)
2) Historical profitability
3/X
Classic Graham/Dodd strategy
Assumes: Use only most liquid current assets, deduct subjective discounts.
Conditions (often missed in screens):
1) Not consuming assets (melting ice cube/negative cash-flow)
2) Historical profitability
3/X
