For years, we have wondered how Warren Buffett valued Coca-Cola, (KO), stock at such a deep bargain in 1988. This book describes a simple two stage discounted cash flow model that delivers a close... More > approximation. This exercise is our quantitative estimation of Coca Cola's Intrinsic Value Per Share in 1988. First, we describe our 2-stage "discounted cash flow" valuation model. Our estimating model is strict. It assumes a business will only "live" for 20 years. Within the model, we apply compounding growth to the first 10 years. Then, we assume a lower growth rate for years 11 till the end of year 20. Since intrinsic value is a highly subjective figure, readers can adjust their model to the quality of the business they wish to value. This book also describes the Warren Buffett secret of "Yield On Cost" when investing in a high quality business bargain.< Less
This may be the best business book that describes the competitive advantages of profitable businesses. MOATS describes the nature of 70 selected businesses purchased by Buffett and Munger for... More > Berkshire Hathaway Inc. MOATS is a very useful resource for investors, managers, students of business. Since its subject matter has proven success, MOATS may become a useful practical text in businesses schools around the world. MOATS also looks at the sustainability of these competitive advantages in each of the 70 chapters.< Less
This book describes the enduring competitive advantages of profitable Berkshire Hathaway businesses. MOATS : The Competitive Advantages of Buffett and Munger Businesses explains the competitive... More > nature of 70 selected businesses purchased by Warren Buffett and Charlie Munger for Berkshire Hathaway Incorporated. This is a very useful resource for investors, managers, students of business around the world. It also looks at the sustainability of these competitive advantages in each of the 70 chapters. The moat is the protective barrier around each business' economic castle. Some of these businesses have double and triple moats of protection.< Less
This second edition is a look back at the 2 year results. "A Fistful Of Valuations" offers 5 sample "intrinsic value per share" business valuations in the style that Warren... More > Buffett and Charlie Munger may use. In each case the author tried to simulate an approach that they would take to valuing a business, based on what they have written and talked about. All of the growth assumptions used are the author's own. The valuation cases are estimations written in a style that emphasizes a focus on free cash flow and the number of shares outstanding. Readers are encouraged to think about the business' competitive position. In reality, these businesses may outperform or underperform the author's projections.< Less
This is the best business book that describes enduring competitive advantages of profitable businesses. MOATS : The Competitive Advantages of Buffett and Munger Businesses explains the competitive... More > nature of 70 selected businesses purchased by Warren Buffett and Charlie Munger for Berkshire Hathaway Incorporated. This is a very useful resource for investors, managers, students of business around the world. It also looks at the sustainability of these competitive advantages in each of the 70 chapters. The moat is the protective barrier around each business' economic castle. Some of these businesses have double and triple moats of protection.< Less
This is the collection of Powerpoint slides used for the talk to the Determinators Investing Club of Rockford, Illinois. We hope you find it useful in your evaluation and valuation of... More > businesses.
Bud Labitan and Scott Thompson
budlabitan@aol.com and sthompson@intrinsicfunds.com
September, 2011< Less
“Coach W Software” was crafted from my imaginary conversation with Mr. Warren Buffett. The real conversation never occurred. The software generated conversation did occur on March 5,... More > 2011. The software exists, and it is a useful tool in reviewing the concepts developed by Mr. Buffett, Mr. Charlie Munger, and Mr. Benjamin Graham. This book verges on science fiction. It is important to point out to all readers that there is no association or endorsement from Mr. Buffett or Berkshire Hathaway. This book is an unauthorized experiment in positive suggestion. It is useful to readers who are new to value investing, and readers who wish to review these great investing concepts.< Less
This book offers 30 sample “intrinsic value per share” business valuations in the style that Warren Buffett and Charlie Munger may use. In each case the author tried to simulate an... More > approach that they would take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are the author's own. No consultation nor endorsement was sought with Mr. Buffett or his business partner Mr. Munger. The examples given are chosen for educational and illustrative purposes only. The valuation cases are estimations written in a style that emphasizes a focus on free cash flow and the number of shares outstanding. Readers are also repeatedly encouraged to think about the business’ competitive position. In reality, these businesses may outperform or they may underperform any of the author's projections.< Less
This book offers 5 sample “intrinsic value per share” business valuations in the style that Warren Buffett and Charlie Munger may use. In each case the author tried to simulate an... More > approach that they would take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are the author's own. The valuation cases are estimations written in a style that emphasizes a focus on free cash flow and the number of shares outstanding. Readers are also encouraged to think about the business’ competitive position. In reality, these businesses may outperform or they may underperform any of the author's projections.< Less
“Price To Value” is about Intelligent Speculation. It is about decision framing and using the amazing "Decision Filters" of Charlie Munger and Warren Buffett. These... More > “filters” offer us the opportunity to enhance our decision framing and decision making skills in both investing and speculation. How can we use this framework to improve our speculative decision making? We can use it to help us separate fact from fiction. Readers will benefit from this book if it stimulates better thinking into the most important factors crucial to decision making. These decision framing ideas can be applied across different asset classes. First, the book presents the four investing decision filters in simplified terms. Then, it extends these ideas by looking into the intelligent speculation ideal described by Benjamin Graham in his tenth lecture of 1946.< Less
Bud Labitan is a practicing physician and investor from Northwest Indiana. He is a graduate of Indiana University with a BS in the Biological Sciences. Dr. Labitan earned his medical degree at the American University of the Caribbean School of Medicine in 1987. He completed the Family Medicine Residency in Gary, Indiana. Dr. Labitan is a proud father and supporter of "Father's Rights" and "Mother's Rights" reform worldwide. He believes in continuous learning, and he enjoys the area of sensible "decision framing" and "decision making."
Dr. Labitan is also a 2003 MBA graduate of the Purdue University Calumet School of Management in Hammond, Indiana. While in graduate school he did research in the Behavioral Finance area of "successful practitioner decision framing" practiced by Warren Buffett and Charles Munger.
He is available for book talks, seminars, and individual training.
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