The Investing for Beginners Podcast (@ifb_podcast) 's Twitter Profile
The Investing for Beginners Podcast

@ifb_podcast

Breaking down the stock market for beginners, using everyday language | Available everywhere | Sign up for Value Spotlight to continue your learning ⬇️

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linkhttps://valuespotlight.com calendar_today16-07-2021 20:36:42

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What's the best starting point to calculate free cash flow? NOPAT Why NOPAT? Because NOPAT excludes financial leverage. We can then go from there to investments and voila! Free cash flow.

What's the best starting point to calculate free cash flow?

NOPAT

Why NOPAT?

Because NOPAT excludes financial leverage. 

We can then go from there to investments and voila! Free cash flow.
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Adobe is a cash-printing operation. It consistently converts over 35%+ of its revenue directly into Free Cash Flow, generating $9.4B in TTM FCF. With that much dry powder, should investors expect more aggressive buybacks or a strategic AI acquisition? $ADBE

Adobe is a cash-printing operation. 

It consistently converts over 35%+ of its revenue directly into Free Cash Flow, generating $9.4B in TTM FCF. With that much dry powder, should investors expect more aggressive buybacks or a strategic AI acquisition? 

$ADBE
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Want to know what a business actually earns? Here's how to analyze its net income: • Track the trend over the last 5 years • Discount any one-time gains or sales • Calculate the net profit margin • Are earnings going up or down?

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Forget revenue. Cash is king. $GOOGL generated over $74 billion in free cash flow in the last twelve months alone. That's $202M in cash per day. With that much firepower, what's the next big move? AI dominance, massive buybacks, or a huge acquisition?

Forget revenue. Cash is king.

$GOOGL generated over $74 billion in free cash flow in the last twelve months alone. That's $202M in cash per day.

With that much firepower, what's the next big move? AI dominance, massive buybacks, or a huge acquisition?
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Field notes from a decade of investing: You find moats in financial statements (high margins) & customer behavior (they won't switch). High growth is NOT a moat; it's a magnet for competition.