Value Investing Does Buffett really uses FCFE? (or owner earning and equity approach)

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Does Buffett really uses FCFE? (or owner earning and equity approach) Posted: 06 May 2018 08:12 PM PDT When i calculate intrinsic value of a business when we buy businesses and whether we're buying all of a business or a little piece of a business i always think we're buying the whole business because that's my approach to it. https://youtu.be/BP_TUDOYDrg?t=2m12s   Intrinsic Value – Today and Tomorrow Though Berkshire's intrinsic value cannot be precisely calculated, two of its three key pillars can be measured. Charlie and I rely heavily on these measurements when we make our own estimates of Berkshire's value. The first component of value is our investments: stocks, bonds and cash equivalents. At yearend these totaled $158 billion at market value. http://www.berkshirehathaway.com/letters/2010ltr.pdf   It sounds like he's thinking in perspective of acquirer so called Enterprise Value. as he thinks like buying whole business even when buying only piece of business. and adding market value of investments is typical process of Enterprise approach. if so FCFF would be appropriate figure rather than FCFE and his well known Owner Earnings that starts with Net Income. am i get it wrong? or are people misunderstood him? i just don't get why the Owner Earnings is so famous. submitted by /u/Simplessence [link] [comments]

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