Ashwin Sanghi Quotes

You must value the business in order to value the stock.

When it comes to valuation, there's only one thing stock investors really care about, which is earnings.

The only thing you should do with pro forma earnings is ignore them.

We define a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more that it is selling for.

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

Managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation.

If I taught a class, on my final exam I would take an Internet company and ask, 'How much is this company worth?' Anyone who would answer, I would flunk.

The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.

An investor calculates what a stock is worth, based on the value of its businesses.

All intelligent investing is value investing - acquiring more that you are paying for. You must value the business in order to value the stock.

Picking winners among the many young companies seeking money is a tough business, even for the most sophisticated investors. Indeed, most professionally run venture funds lose money. For individuals, it's pure folly. Buy a lottery ticket instead. Your chance of winning is likely to be higher.

When we took Netscape public, if people wanted to invest in the web, that was the only stock that they could do it by investing in. So Netscape's market value was higher than it probably otherwise would have been if there were lots of other ways to play that theme.

In market valuation, Yahoo is worth about as much Walt Disney and the News Corporation combined.

There is no sense in getting excited by market cap because it is a tool.

There are no accounting issues, no trading issues, no reserve issues, no previously unknown problem issues.

At our peak, no one knew how to value Digg.

Once in a while, I see my fellow TV investors praise a business just because they like the entrepreneur behind it. That kind of thinking might make you feel warm and fuzzy inside - but let's get back to reality.

Of all the big Internet companies, Yahoo is the most highly valued on a price-earnings and price-sales basis.

With 'posts' running in the millions, Internet message boards have become an essential part of the savvy investor's arsenal.

Certified Public Accountant

Companies always have a balance sheet of its assets, but counties do not.

Who cares if companies are overvalued or not?

The only way one should buy stocks is if you understand the underlying business. You stay within the circle of competence. You buy businesses you understand.

The essence of a good investment manager is one who studies a given business and extrapolates the future cash flows that the business is likely to generate over the next several years. Based on the cash flow and asset assessment, they can then arrive at their expected rate of return if they bought a fraction of that business at a given price.

I myself saw Yahoo become a $100 billion company and then become a $10 billion company, so you always have to look at valuations with a grain of salt and understand it is a point-in-time measure.