|Even businesses with durable moats don't last forever. Thus, when using John Burr Williams's intrinsic value formula, we ought to limit the number of years we expect the business to thrive. We are best off never calculating a discounted cash flow stream for longer than 10 years or expecting a sale in year 10 to be at anything greater than 15 times cash flow at that time (plus any excess capital in the business).
Source: The Dhandho Investor: The Low - Risk Value Method to High Returns
by Mohnish Pabrai
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