1) The certainty with which the long-term economic
characteristics of the business can be evaluated;
2) The certainty with which management can be evaluated,
both as to its ability to realize the full potential of
the business and to wisely employ its cash flows;
3) The certainty with which management can be counted on
to channel the rewards from the business to the
shareholders rather than to itself;
4) The purchase price of the business;
5) The levels of taxation and inflation that will be
experienced and that will determine the degree by which
an investor's purchasing-power return is reduced from his
gross return.
Subscribe to:
Post Comments (Atom)