Company valuations: Why first principles matter most : vimar

Company valuations: Why first principles matter most


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Company valuations: Why first principles matter most
‘The more variables going into a valuation, the more chance there is that that the outcome is actually rubbish’: Keith McLachlan, Integral Asset Management.
09:22 
SIMON BROWN: I’m chatting with Keith McLachlan. He’s an investment officer at Integral Asset Management. Keith, I appreciate the early morning. You wrote a piece for Moneyweb on Purple Capital last week; it came out maybe early this week. One of the comments in the chat was from someone saying you’d referred to it as ‘a matchbox calculation’, not an in-depth discounted cashflow or anything. The comment was that matchbox calculations often beat in-depth, simply because fewer inputs mean fewer things can go wrong. 

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