Hey man, i love this video, thanks for writing this out!
With the 'deployed capital', isn't there $300m of working capital, subtract $100m cash at end of quarter, plus $100m of PPE? So deployed capital of $300m, not $200m?
Can't get my head around this after watching the vid a bunch of times
Thank you a lot for the transcript and the comment! Could you still clarify where he gets the 100m of PP&E? Can you see/deduct it from the page provided?
Hey man, i love this video, thanks for writing this out!
With the 'deployed capital', isn't there $300m of working capital, subtract $100m cash at end of quarter, plus $100m of PPE? So deployed capital of $300m, not $200m?
Can't get my head around this after watching the vid a bunch of times
Deployed Capital Calculation:
Working Capital (excluding cash): $285.9m - $19.3m cash = $266.6m
Property, Plant & Equipment (PP&E): $100m
Deployed Capital = Working Capital (ex-cash) + PP&E
= $266.6m + $100m
= $366.6m
If we calculate it with 100m in cash and use a discount on the inventory, we would have a total of deployed capital of 286.6m.
Li Lu kept it super simple, so that everyone could follow on the spot during the lesson. It is too hard to follow otherwise - but it gets afterwards
Thank you a lot for the transcript and the comment! Could you still clarify where he gets the 100m of PP&E? Can you see/deduct it from the page provided?
Almost every manufacturer writes buildings & equipment off over 10–12 yrs.. So we can have a nice formula of. Net PP&E≈Depreciation×(Useful life/2)
That gets us to pretty much 100m.
Wait on further thoughts, it seems 'liquid assets' ignores the $100m left in inventory after turning $100m into cash.
And also 'deployed capital' doesnt include inventory too.
I wonder why this isn't included in the deployed capital??
Thank you for such a great post. Really thought provoking.
Glad that you enjoy it
Very funny watching him get animated about how slow they are.
This is amazing, thank you. Can you tell me which stock handbook / manual that page about Hyundai Department Store is from? Thank you!
The Standard & Poor's Stock manual. Which one exactly of the hundreds that came out, I am not sure
many thanks! your transcript is useful!
1 of the best sessions with 1 of the best investors
Where do you find the numbers he recalls on the tables? I don't really seem them :/