Book value

Understanding Book Value: What Buffett REALLY Means About This Accounting Measure

Warren Buffett is probably the most watched investor in the world. Many asset managers seek to emulate his movements. This is not surprising considering its impressive track record of generating returns above US stock market averages for six decades. So when the Sage of Omaha seems to throw a favorite measuring tool out of his […]

Book value

Why book value is dead

Long-standing structural changes in the economy have turned book value into a weak and incomplete measure of business value. Technological innovations have had a significant impact on where companies acquire capital, where they invest that capital, and how the value they create is measured. Underway more than 40 years ago, this economic transformation – and […]