IMHO there is a little misunderstanding w/r/t Buffett and Munger's 9% or treasury rate discount rate. They are using it as a way to compare all opportunities to each other.
Most investors use it on a case by case basis to determine if a specific investment is undervalued. Then the discount rate should generally be your desired return (if you would be willing to buy it at the DCF price); you could be a prophet when it comes to forecasting cash flows but you'll still only earn your discount rate if everything goes perfectly.
Hey all,
I would love to get my hands on these-even willing to $$$ for them. If anyone would like to take me up on this please reply, or DM if you're worried about anonymity. Thanks.
Thanks Parsad. I remember reading something along the lines of principal is backed by his personal guarantee and net worth, although can't remember where. What you said makes more sense though.
This topic has been moved to Investment Ideas.
Since we're basically talking about it's merits as an investment idea.
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