To understand how a company can lose $256 million in reported earnings in 2020 and yet show FCF that year of $491 million you need to read and understand the company’s cash flow statement.
The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return
We must be content with hunches and alternative scenarios instead of determinate predictions
The mistake many make is to think investing is only about numbers. We invest in businesses, not in financial statements.
The combination of a Treasury Note Real Yield of roughly 2% today and Inflation Expectations of roughly 2% is the best and most benign it has been since the 1970’s when inflation caught fire.
Market and economic structures can shift, undercutting a key basis for using historical data to make predictions
One of his investment funds had the name Consolidated Artists Investment Fund. Get the joke? Con Artist Investment Fund.
Each post has a list of what Daniel Kahneman, a Nobel Prize winning psychologist, calls risk policies and I call gap-to-edge rules.
Here were financial people who could seriously consider stocks less safe because they have declined in price
Accounting is but an aid to business thinking, never a substitute for it