<p>If you want to put your money in an equity, that’s the risk you take. Trying to eliminate that risk from the calculations is frankly impossible.</p>
<p>Value is a function of time, and time marches on. We cannot stop time at the point of acquisition and declare that point is the value for all future applications. Value fluctuates; that’s just the way the world works.</p>
<p>It reminds me of a friend of mine complaining that the price an owner was asking for a house he was renting was too high. He kept saying the house wasn’t worth that much, but the owner was getting interested parties. I had to tell him that a house is worth whatever someone is willing to pay for it. Value is not some arbitrary number, past or future. It is what the market will bear at that point in time.</p>