“Book value is an accounting concept, recording the accumulated financial input from both contributed capital and retained earnings. Intrinsic business value is an economic concept, estimating future cash output discounted to present value. Book value tells you what has been put in; intrinsic business value estimates what can be taken out.”

in Investing, Warren E. Buffett, Writers

-Warren E. Buffett, 1983 Chairman’s Letter to the Shareholders of Berkshire Hathaway, Inc.

Leave a Comment

Previous post:

Next post: