Via a nice new blog called Compounding Machines, check out this speech by Buffett's Boswell Alice Schroeder, in which she discusses how he valued a little-known private investment he made in a company called Mid-Continent Tab Card Co. But I can't quite get the numbers she gave to fit--take a listen and see if you can.
This case study illustrates one of the themes of this blog: value investing is not simply a way to pick stocks. It's a way of thinking about capital allocation in general, applied here to a private equity investment.
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