Intrinsic value – “a third, more subjective, element to an intrinsic value calculation that can be either positive or negative: the efficacy with which retained earnings will be deployed in the future”
In another word, CEO’s intention can make a huge difference.
Leverage – “Borrowers then learn that credit is like oxygen. When either is abundant, its presence goes unnoticed. When either is missing, that’s all that is noticed.”
And due to this cautiousness on leverage & the habit of not-to-maxmize-yield, “during the episodes of financial chaos that occasionally erupt in our economy, we will be equipped both financially and emotionally to play offense while others scramble for survival”.
What a time – Chinese language edition of Poor Charlie’s Almanack is available to purchase at the annual shareholder meeting.
Need to “face up immediately to bad news”.