03-06-2016, 11:58 AM
Quote from 1992 Berkshire Hathaway Letters:
But how, you will ask, does one decide what's "attractive"?
In answering this question, most analysts feel they must choose
between two approaches customarily thought to be in opposition:
"value" and "growth." Indeed, many investment professionals see
any mixing of the two terms as a form of intellectual cross-
dressing.
We view that as fuzzy thinking (in which, it must be
confessed, I myself engaged some years ago). In our opinion, the
two approaches are joined at the hip: Growth is always a component
in the calculation of value, constituting a variable whose
importance can range from negligible to enormous and whose impact
can be negative as well as positive.
In BWL case, seems like its growth component is simply having an enormous bearing on its market price.
But how, you will ask, does one decide what's "attractive"?
In answering this question, most analysts feel they must choose
between two approaches customarily thought to be in opposition:
"value" and "growth." Indeed, many investment professionals see
any mixing of the two terms as a form of intellectual cross-
dressing.
We view that as fuzzy thinking (in which, it must be
confessed, I myself engaged some years ago). In our opinion, the
two approaches are joined at the hip: Growth is always a component
in the calculation of value, constituting a variable whose
importance can range from negligible to enormous and whose impact
can be negative as well as positive.
In BWL case, seems like its growth component is simply having an enormous bearing on its market price.