IPsFunds.com
Title
IPS FUNDS
Description
It is the process of scientific discovery that underlies all value creation. Technology has been the primary driver of value creation and higher living standards throughout human history. The development of agricultural technology about 12,000 B.P. dramatically raised living standards and extended human life. The development of printing presses and associated paper and ink technologies in the mid-1400s dramatically expanded and accelerated humanity's ability to build on existing and past knowledge.
It is the business of companies to channel scientific discovery into the creation of financial value. The scientific discovery process only creates the potential for value creation. In fact, there is often a lag of half a century to a century before the potential value of a discovery is turned into hard cash from the basic discoveries on which it is based. It is through the creation of an organization (private companies, for our purposes as investors) that these scientific breakthroughs are actually, and finally, channeled into the creation of value for investors, and for society as a whole.
Bedrock financial theory states that a security's Fair Value (FV) is the present value of its future Free Cash Flows (FCF). I've mentioned this before, but something I've never explained is what exactly does knowing this allow you to do? What do we do with the knowledge here at IPS Funds?
