FV = PV (1+i)n FV = The Future Value of Money (this is the estimated market price in 10 years) PV = The Present Value of Money (this is the current market price) i = The Growth Rate (This number is a little tricky to determine. You can calculate this number by using the www.BuffettsBooks.com intrinsic value calculator. Simply adjust the input for the 10 year federal note until the calculation equals approximately $70 for company XXX and $50 for TTT. Those numbers are the current market price for XXX and TTT. If you get confused, please look at the screen cutouts I’ve provided below. The link
...more
