Week 13 Reading Reflection

This week's reading was on valuation of entrepreneurial ventures.  The biggest surprise to me about the reading was in regards to the control factor.  Shareholders in many companies can be the swing votes in big decisions regarding the company's future.  I guess I had never really thought of stock in that way before.  I had only looked at it in regards to its value increasing or decreasing.  But when you purchase stock, you are actually buying a small portion of the company.  The only part that confused me a bit was the math section.  I got  bit lost in the adjusted tangible book value and price/earnings ratio.  Other than that, it seemed pretty straightforward to me.  If I could ask the author something, I would go a different route.  I would ask him about stock, and what he looks for when making stock purchasing decisions.  I would also ask what are the biggest red flags to look for.  There was not anything in this week's reading that I particularly disagreed with.