---
title: "Meaning & Key Takeaway of: Asset values and earning power are the…"
description: "\"Asset values and earning power are the dominant factors affecting the valuation of a controlling interest in a business. Market price, which governs va..."
image: "https://sms4smile.com/quotes/i/2be/warren-buffett-183_assets_asset-values-and-earning-power-are-the-d_390410.png"
---

#  Asset values and earning power are the dominant factors…

![“Asset values and earning power are the dominant factors affecting the valuation of a controlling interest in a business. Market price, which governs valuation of minority interest positions, is of little or no importance in valuing a controlling interest.” quote by Warren Buffett](https://sms4smile.com/quotes/i/2be/warren-buffett-183_assets_asset-values-and-earning-power-are-the-d_390410.png)   [Download](https://sms4smile.com/quotes/i/2be/warren-buffett-183_assets_asset-values-and-earning-power-are-the-d_390410.png) [Open image](https://sms4smile.com/quotes/i/2be/warren-buffett-183_assets_asset-values-and-earning-power-are-the-d_390410.png)

> “Asset values and earning power are the dominant factors affecting the valuation of a controlling interest in a business. Market price, which governs valuation of minority interest positions, is of little or no importance in valuing a controlling interest.”

[Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Control value depends on the business’s earnings ability, not on market price of minority shares.

**In simple terms:** Control is about earnings, not price.

Key Takeaway

Focus on earnings power when valuing control.

Themes

valuation control business fundamentals

Mood

analytical pragmatic

Type

financial business

When to use this quote

- acquisition decisions
- investment analysis
- corporate finance
- strategic planning

Key Concepts

earnings power dominant factors valuation investment strategy

Questions to Reflect On

- How do you assess earnings power?
- What risks arise from ignoring market price?

A Different Perspective

Market price can be misleading for control valuation.

★ ★ ★ ★ ★   No ratings yet

[Affecting Valuation](https://sms4smile.com/quotes/about/affecting-valuation-3522307/) [Asset Values](https://sms4smile.com/quotes/about/asset-values-446386/) [Assets](https://sms4smile.com/quotes/about/assets/) [Business](https://sms4smile.com/quotes/about/business/) [Customer](https://sms4smile.com/quotes/about/customer/) [Dominant](https://sms4smile.com/quotes/about/dominant/) [Earning](https://sms4smile.com/quotes/about/earning/) [Factors](https://sms4smile.com/quotes/about/factors/) [Governs Valuation](https://sms4smile.com/quotes/about/governs-valuation-3522310/) [Importance](https://sms4smile.com/quotes/about/importance/) [Interest](https://sms4smile.com/quotes/about/interest/) [Investing](https://sms4smile.com/quotes/about/investing/) [Littles](https://sms4smile.com/quotes/about/littles/) [Minorities](https://sms4smile.com/quotes/about/minorities/) [Position](https://sms4smile.com/quotes/about/position/) [Valuation](https://sms4smile.com/quotes/about/valuation/) [Valuation Controlling](https://sms4smile.com/quotes/about/valuation-controlling-3522308/) [Values](https://sms4smile.com/quotes/about/values/) [Valuing Controlling](https://sms4smile.com/quotes/about/valuing-controlling-3522309/)

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