“I am a better investor because I am a businessman, And a better businessman because I am an investor.”

Warren Buffett The Tao of Warren Buffett

OVERVIEW: The 2nd Most Powerful Formula in Finance

This section develops the simple formula that explains the relationship between the fundamental value of a company (its Enterprise Value) and the supply & demand for a company’s stock. Understanding this formula provides clear insight into the role of BOTH managers and Shareowners in creating value for Shareowners. It also provides insight into the importance of understanding and using both fundamental (value) and technical (momentum) analysis in order to put cash in your pocket.