Make money doing the work you believe in
Working on a post about valuation rules of thumbs. These are the three I currently use:
Could the stock double and still be cheap?
Make exceptions for exceptional businesses! By this I mean predictable double digit growth at a very reasonable price.
Think like you’re buying your nearest local café: what would you pay for the cash flows, what yearly yield would get?
My personal hurdle rate is 10%. I want to see a credible path to double-digit annual returns from here for every holding.
What valuation rules of thumb do you use?
May 4
at
2:19 PM