Hi everyone,
after reading and watching a lot of Munger,Buffet,Pabrai and Greenblatt i always come across the approach of simple math for valuation instead of running different DCF Models.
The approach of buying a whole business with the questions of when do i get my money back and how sure are you?
Like most of you know it's often mentioned that if you need a spreadsheet or calculator don't buy the stock.
Is anybody investing like that?
I mean i check the financials , i want no or low debt that can be covered by FCF within 5 years.
EPS should cover the stock price within 3-5 years
The financial should show a steady growth
And most of the time i run it through some websites like simply to check if anything else is off with the company😁
It worked so far for me, i stayed on the sideline to see some companies sky rocket after valuating them but not investing because it i didn't feel confident to buy😁
The stocks i invested in are all up 5-10% so far but as the market is booming i don't think i made profit because of smart decisions😂
So is anybody using a simple approach like that and does it work?