In this segment of The Motley Fool's all-financials show Where the Money Is, Fool financial analysts Matt Koppenheffer and David Hanson take a question from a Fool reader on Facebook who writes, "What is the fair market value of MasterCard (NYSE: MA ) ?"
Matt and David discuss why precise valuation models depend on predicted future data that makes them almost inherently wrong and why a general picture of MasterCard's revenue growth and prospects as a company can be much more useful in deciding whether this is "a good company at a fair price," as Warren Buffett would say, or a stock that's gotten a bit too far ahead of itself.
The wisdom of Warren Buffett
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love.