Sunday Schloss #6

This one comes from December 1965 and is a back and forth between Schloss and Charles Ellis-- I think this one should be sent to a few companies.
Excerpts:

"My point is that if the assets are large enough, the stockholders benefit by repurchases at discounts from book value and the purchase of stocks above book value in times of prosperity can be later criticized if earnings decline through no fault of management but simply because of vicissitudes in the industry. "

"Earnings are much more likely to fluctuate than are book values, and therefore estimating longer term earnings than, say, the next year or so can be subject to serious error."

Schloss1965

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