Growth and value are not distinct categories · Transcript · BuffettMungerGPT

WarrenThe question about growth and value is that we've addressed in past annual reports, but they are not two distinct categories of business. Every business is worth the present. If you knew what it was going to be able to disgorge in cash between now and judgment day, you could come to a precise figure as to what it is worth today. Now, elements of that can be the ability to use additional capital at good rates, and most growth, companies that characterize as growth companies, have that as a characteristic. But there is no distinction in our minds between growth and value. Every business we look at as being a value proposition, the potential for growth and the likelihood of good economics being attached to that growth are part of the equation in a value. But they're all value decisions. A company that pays no dividends growing 100% a year is losing money now. That's a value decision. You have to decide how much value you're going to get.