Week 13 Reading Reflection

What I found surprising and interesting, was how entrepreneurs must be objective to avoid emotional bias. I like this, but it surprised me. As a journalist, my job is to be objective. It was surprising to realize entrepreneurs need to be, as well. You would think that entrepreneurs would need to be passionate and head-over-heels for their product, but this is not the case. It’s a nice surprise.

Something that confused me was the discounted earnings method, which the author writes ca help determine a firm’s true value. Just because, a method like this seems completely dependent on the future, and in the end, is only a hypothesis. It also looks at the estimated cash flow, which I feel like can be very dependent on a lot of things.

If I could ask the author two questions, I would ask: what is a reasonable life expectancy of a business? And how dependable is the discounted earnings method?

I wouldn’t argue against the points of the author in Ch. 14. The information is thoroughly backed up through numbers and examples.