meta_pixel
Tapesearch Logo
Log in
Animal Spirits Podcast

Talk Your Book: Investing in Free Cash Flow

Animal Spirits Podcast

The Compound

News, Business News, Business, Investing

4.82K Ratings

🗓️ 16 September 2024

⏱️ 34 minutes

🧾️ Download transcript

Summary

On today's show, we spoke with Michael Mack, Associate Portfolio Manager for Victory Capital to discuss how to calculate free cash flow, if the Mag 7 would have shown up on a free cash flow screen, avoiding value traps, sector exposure within high free cash flow strategies, and much more! Find complete show notes on our blogs... Ben Carlson’s A Wealth of Common Sense Michael Batnick’s The Irrelevant Investor Feel free to shoot us an email at [email protected] with any feedback, questions, recommendations, or ideas for future topics of conversation. Check out the latest in financial blogger fashion at The Compound shop: https://www.idontshop.com Past performance is not indicative of future results. The material discussed has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed. Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Ben Carlson are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. The Compound Media, Incorporated, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here https://ritholtzwealth.com/advertising-disclaimers. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information. Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here: https://ritholtzwealth.com/podcast-youtube-disclosures/ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

Today's Animal Spirits Talk Your Book is brought to by Victory Capital.

0:03.4

Go to Victory Shares.com to learn more about the Victory Shares Free Cash Flow ETF

0:08.8

and the Victory Shares Small Cap Free Cash Flow ETF.

0:11.5

That's VFLO and SFLO. Again that's victory shares

0:15.1

dot com to learn more. Remember all investing involves risk. Victory shares

0:19.5

EDFs are distributed by Fourside Fund Services LLC and you can visit VictoryShares.

0:25.2

For details and prospectuses.

0:27.0

Welcome to Animal Spirits, a show about markets, life, and investing.

0:34.0

Join Michael Batnik and Ben Carlson as they talk about what they are reading, writing, and watching.

0:39.0

All opinions expressed by Michael and Ben are solely their own opinion and do not reflect the opinion of

0:44.0

Riddholz Wealth Management.

0:45.7

This podcast is for informational purposes only and should not be relied upon for any investment

0:50.2

decisions.

0:51.2

Clients of Riddhholz wealth management may maintain positions

0:54.0

in the securities discussed in this podcast.

0:59.0

Welcome to Animal Spots with Michael and Ben.

1:01.0

On today's show, we're talking about how to build a portfolio using free cash flow as the underlying metric.

1:07.0

Then a lot of the traditional value research in the academic world was focused on the price to book factor. Book value is essentially

1:17.0

the net asset value of the company. The first time that I saw a free cash flow, which is I guess like the modern day book value,

1:27.0

the first time that I think I saw that was Michael Mobison, who spoke about how using free cash flow as a metric, would have screened,

1:38.0

or you would have, using free cash flow to value Amazon would have showed you, yeah, this company on a gap basis is losing

1:49.8

money for the last 37 quarters in a row or whatever it is.

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from The Compound, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Compound and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2025.