A Fistful of Valuations in the style of Warren Buffett & Charlie Munger (Third Edition, 2015)

Book excerpt: This book offers 5 sample "intrinsic value per share" business valuation estimations that were first performed in 2010. Done in a style that Warren Buffett and Charlie Munger may use, these valuations are based on free cash flows each business produced. In each case presented, the author, Bud Labitan, simulated an approach that Buffett and Munger might take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are Labitan's own. No consultation or endorsement was sought with Mr. Buffett or Mr. Munger. How is this portfolio of five businesses doing after five years? If the reader had invested an equal amount of money in all five businesses in 2010, the average annual return so far would be 42%.