We start off with an observation that may appear self-evident:
- Great investors are not necessarily great businessmen and
2. Great businessmen are not necessarily great investors
This has created an interesting paradox. How can different people have such different views on the same subject matter – chiefly the investments in common stocks?
What happens in the business world and what is taught in the vast majority of finance courses is striking different. For example the projecting of future cash flows or the calculation of intrinsic values of business are uncontroversial parts of any business school curriculum.
Approach a businessman with the same set of projections and hilarity ensues.
How can financial analysts proclaim to have precise calculation of business values when management themselves do not know with precision what lies ahead in the coming year? How can two experts in their field arrive at vastly different conditions?
My own observation ...
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