May
7
“I think the true test of whether you can do valuation is whether you can take the stories that you hear about companies and convert them into numbers for the future. Thus, if your story is that a company has loyal customers, I would expect to see the evidence in stable revenues and lots of repeat customers; as a result, the cash flows for the company will be higher and less risky. After all, at the end of the process, your dividends are not paid with qualitative dollars but with quantitative ones.”
Musings on Markets: Alternatives to the CAPM: Wrapping up
