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Value investing as Graham and Dodd described it is a very specific strategy. Future earnings are hard to predict or calculate - but factories, land, and cash e
by jdsully 7y ago
Value investing as Graham and Dodd described it is a very specific strategy. Future earnings are hard to predict or calculate - but factories, land, and cash exist and have real value that is computable.
Right now the market is saying one of two things with a 1.0 price/book:
1) Ford's ongoing business is currently worth $0
OR
2) Ford's capital assets are currently worth $0
It's much easier to make a judgement call on those predicates which are based in the present rather than predict the future.