Making sense of free cash flow numbers

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.
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
Accounting is but an aid to business thinking, never a substitute for it
Have a good read while we are away on holiday for a few weeks
The vast majority of wealth creation comes from a reasonably sized cohort of successful companies. The trick is to identify these wonderful businesses.
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
JPMorgan Chase reported strong results in the fourth quarter as we earned $11.0 billion in net income…and an ROTCE of 20%
Sunkenness – intangible investments tend to be worth less if they go wrong
Mortgages on income properties will permanently reset to a higher level
Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes
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