The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated (Heilbrunn Center for Graham & Dodd Investing Series)

Let’s take a simple hypothetical example to explain this process. Let’s say we want to buy shares of Company X, whose current market value is $1 billion. For the sake of simplicity, we assume that there are no dividends, stock options, debt, or off-balance-sheet obligations. The business has owner earnings of $40 million and an assumed average annu

This leads us to the discussion regarding the appropriate starting point for the cost-of-capital number.

Do you ask what is the proper limit to wealth? It is, first, to have what is necessary, and, second, to have what is enough.

the business earns 6 percent on capital over 40 years and you hold it for that 40 years, you’re not going to make much different than a 6 percent return even if you originally buy it at a huge discount. Conversely, if a business earns 18 percent on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with a fine re

You Can Be a Stock Market Genius,

The goal of financial independence is to stop depending on others (bosses, clients, a schedule, a paycheck). True wealth is measured in terms of personal liberty and freedom, not monetary currency. Money alone does not signify independence. Control over time does. The only definition of success is to be able to spend your life in your own way.

The Hidden

There is no path to peace. Peace is the path. —Mahatma Gandhi

One of the hardest things to do in life is to avoid good opportunities so that you have time to devote to great opportunities—and having the wisdom to know the difference.