I have been writing in this blog for about three years now. Looking back, I have learnt about stocks valuation and the different techniques. I felt that stock valuation is more of an art than science/math. It seems that the more experience I get, the more vague things become.

Stocks Valuation Too Precise and Arcane

I think I have a decent grasp on assessing business quality and competitive advantages. As long as it is within my circle of competence. When it comes to stocks valuation, most valuation techniques seem overly precise and arcane. I honestly feel like if I valued a business 3 times using the Discounted Cashflow Method (DCF), I could have a huge valuation gap between the three of them all depending on my mood. The terminal value in a DCF just seems to have way too much weight in the model. Recently, I try to...