Valtrend - Butler Business Valuation

Archive for August, 2011

Investment and/or the Investor: What Matters?

Wednesday, August 31st, 2011

Every corporate finance textbook tells students that it is the risk of the investment that matters.  BUT… (more…)

Financial Models: What Went Wrong?

Thursday, August 25th, 2011

In a nutshell, they are just models.  Models are not facts.  “All models are wrong, but some are useful” (Emanuel Derman).  The current financial/mathematical models can explain or capture a large majority of cases most of the time, but (more…)

There is Good and then there is Bad Diversification

Tuesday, August 16th, 2011

Some rather large companies with significant cash balances are getting (back) into the (more…)

Hedging: Who Needs It?

Saturday, August 13th, 2011

Many US companies no longer get hurt (that much) when the US dollar gains in value.   They do not have to hedge nearly as much as they used to.  Why?  (more…)

Buy High – Sell Low: Stock Buybacks

Friday, August 5th, 2011

Generally, most businesses have the most amount of cash at the top of the economic cycle when their share prices are high.  So, what do they do?

They buy back their own (expensive) shares, of course, and then watch (more…)