free cash flow
General Information

FOCUS ON THE CASH

Cash flow, not reported earnings, is what determines long-term value-William Thorndike

“Great fundamental investors focus on understanding the magnitude and sustainability of free cash flow”  Michael Mauboussin

“If you don‘t have the free cash flow, you don‘t have anything.” Leon Cooperman

“Net income without cash is not necessarily net income” Henry Singleton

 “When I think of ownership of a business we are basically counting cash as it is earned, which is typically when the product or service is delivered. Investing is simply the counting of all that cash and discounting that cash stream at an acceptable rate to determine what the investment is worth and buying that stream as a discount to what it is worth” Christopher Begg

“Not every idea fits this, but we basically estimate free cash flow – EBITDA less maintenance capital spending, cash taxes and cash interest, over whatever time horizon we can reasonably assess, putting a reasonable multiple on that in the out year. We’re shooting for situations with double-digit free-cash-flow yields. We think with those we have a very significant margin of safety” Jason Stankowski

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