It required banks to write down the value of assets (such as long-term bonds) to market value, even if the banks intended to hold them until maturity.
The gold will add sheen to Hughes' market value for a long time.
The reality is, in the very long run prices in the stock market will reflect value.
Selling for a ratio of six times enterprise value (market cap plus long-term debt) to EBITDA cash flow (earnings before interest, taxes, depreciation and amortization), Cemex looks cheap.
And Liberty Entertainment's 54% stake in DirecTV was for a long time worth more than Liberty Entertainment's total market value.
During a time when PC manufacturers were driving down costs and cutting back services, Best Buy took a long view of the changes in the market and enhanced the value of customer service.
At the heart of Buffett's simple but highly effective strategy is having the discipline to recognize when the market is not properly reflecting the true long-term value of a particular business, which can be calculated by discounting its likely future cash flows at an appropriate discount rate.
We use EBIT--earnings before interest and taxes--and we compare that to enterprise value, which is the market value of a company's stock plus the long-term debt that a company has.
That is what makes the use of sector rotation strategies so compelling: Whereas growth and value have long been sold as a way to break the market down into two distinct exposure groups, sectors allow you to break the market into 10 distinct exposure groups with unmatched flexibility for fine-tuning.
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If interest rates shoot up, people holding long-maturity bonds can see 20% or even 40% losses in market value.
We will focus on being in size for this quick momentum type move, but if market conditions continue to improve JPMorgan could represent a tremendous value for a long-term buy in this area.
Likewise, companies do not have to value at market prices shares in affiliates and subsidiaries that are held for long-term investment purposes.
Value investors target depressed valuations but may wait for a long time for the market to share their appreciation of the down and out.
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For such an exercise, banks would have to value these bonds not at their expected long-term values but at the current depressed market values.
About money, it should be remembered that it was conceived long ago solely to facilitate the exchange of goods, and as a way for market actors to measure the value of investments.
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Then, with much of the European bond market effectively neutralised by the long-term purchase of government debt by the ECB (we are paid not to think about the market value, says one fund manager), you make a large part of the world's debts difficult to value.
Though holding Russian and Asian bonds in 1998 meant the market value of its portfolio took a beating, not selling gave the fund a chance to avoid long-term harm.
So long-bond buyers in today's market run the risk of purchasing something that is extremely likely to lose value while gaining nothing or next to nothing in yield pick-up.
In this environment, we will continue to react quickly to changes in market conditions and apply our value based management discipline across the portfolio to drive continued progress toward our long-term goals.
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In this context, sustainable investments are expected to deliver risk-adjusted returns in line with the market over a reasonably long investment period, and EFP in the form of environmental, social and other added value.
Warren Buffett, long-known for spotting value in out-of-favor names, remains optimistic about the long-term prospects for the market.
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Though business trends decelerated in the fourth quarter, we remain focused on new product development and market share gains to offset the secular declines in the PND industry and the continued generation of long-term shareholder value.
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