Real Estate

The REO Formula – Real Estate

To clarify, let’s describe what Real Estate or “REO” is. Real estate foreclosed by an institutional lender (primarily banks, mortgage companies, insurance companies, etc.) and now owned by that lender is owned by REO. Most lenders have an REO department within their business generally managed by an REO officer, a bank employee, or another lender. […]

Real Estate

Equity Research for Value Investments

Despite many of the negatives we hear about DCF-based equity valuation these days, it remains a conventional method for equity valuation as part of fundamental equity research. In his 1992 Berkshire Hathaway (BRK.A) Annual Report on DCF’s Stock Valuation Method, Warren Buffett stated “In the theory of investment value, written more than 50 years ago, […]