Free cash flow is a key metric in value investing. It provides a more reliable view of a company’s financial health than its earnings, which can be influenced by creative accounting. By focusing on free cash flow, investors can identify financially solid companies with long-term potential and reduce reliance on speculation.

As we close out 2024 and as InvestED nears its 500th episode, this week we’re looking back on an episode from very early in the show’s run. This Vault pull serves as an excellent primer to anyone who’s new to the show and gives a great overview of Rule #1/Buffett-style investing.

For some great year-ending insights into the mind of the Oracle of Omaha, click here for a free copy of Phil’s Warren Buffett Book of Quotes: https://bit.ly/3OEPXjL

Topics Discussed:

Humanizing companies
Crowdfunding and regulation
Cash flow vs. earnings
Certainty in investing

Resources Discussed:

Payback Time

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495- FROM THE VAULT: Understanding Free Cash Flow 39:58 Share

InvestED: The Rule #1 Investing Podcast

Shownotes Transcript

495- FROM THE VAULT: Understanding Free Cash Flow