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
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
Today everyone is fretting about inflation and the potential for a recession. Trying to decide on the outlook for these macro-economic things can be a distraction.
Inactivity strikes us as intelligent behavior
I find it better to analyze a company’s cash flows, maintenance capex, growth capex and free cash flow in real dollar terms and measure them against the true value of the capital management has use of
You should wish your earnings to be reinvested if they can be expected to earn high returns
“If you can look into the seeds of time,
And say which grain will grow and which will not,
Speak then to me.”
The small picture is its specialist technical, engineering, construction and operational skill and economic performance
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