495- FROM THE VAULT: Understanding Free Cash Flow

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.6 • 1.6K Ratings

🗓️ 31 December 2024

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This episode is brought to you by Curry's Business.
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0:25.6	Curry's business, powering your business in 2025.
0:29.6	Hey everybody, welcome to Invested. I'm Danielle Town.
0:33.6	Happy New Year.
0:35.6	We are putting up an episode from The Vault today.
0:39.1	It's one that's from back towards the beginning of our podcast, and it is technically
0:44.2	titled about free cash flow, but it really is actually a great overview of Rule 1 Buffett-style
0:52.5	investing from kind of from nuts to bolts.
0:56.0	So I thought it was appropriate for the beginning of the year, start the year off, right?
1:01.5	But also because we're nearing our 500th episode and looking back at everything we've done is a bit nuts.
1:10.0	So for all of you who have been listening since
1:12.4	the very beginning or have gone back to the beginning and started at number one, which is what
1:16.9	many of our listeners do, this will come as a great overview for you and a reminder of the basics,
1:24.1	which I always love. And for those of you who haven't gone back to the beginning,
1:28.2	this will be a good overview and a reminder of the basics, which I always love. So I hope you
1:35.3	have a wonderful New Year's, and we will be back in 2025, the future.
	...

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