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The market against normal interest rates is on the high side of valuation – not dangerously high, but on the high side of valuation. On the other hand, if these interest rates were to continue for 10 years, stocks would be extremely cheap now. CNBC, MAY 4, 2015
Yes, that's right. Warren Buffett said you need to take interest rates into account when valuing the market, just like Brock Value does. To demonstrate his first statement, for example, if you calculate BV with normalized interest rates (the 10-year median) the market is trading 4% above its intrinsic value.