The initial question is always the same: Are you capable of estimating what these assets are worth? Or, as Buffett would put it, are you within your circle of competence? If the answer is no, forget it and move on to valuing something else. There is nothing wrong with that; in fact, you should take pride in knowing what you are and are not capable of valuing. This self-knowledge is what distinguishes the great investors and avoiding mistakes is just as important as doing a good job picking winners. Buffett puts the majority of potential investments into the “too hard to value” pile and simply
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