Not exact matches
Even Fox with its large
businesses looks like it is deciding it should either get bigger or sell; it also would be selling the
businesses producing the minority of its free cash
flow.
First off, Munger said See's was his most important learning lesson because it taught Munger and Buffett about the value of owning a great
business, specifically one that can
produce ever growing levels of cash
flow with very little incremental capital requirements.
In fact, the
business probably would be growing even without that additional capital, and the nature of Facebook, Microsoft, and Google's main
businesses are that they
produce huge returns on capital, significant cash
flow, and require little to no capex.
What's interesting is that Buffett talks about See's as the most attractive type of
business in this example, and certainly a
business that
produces steadily rising cash
flow on a very low capital base is a great
business.
«Universities are in the
business of
producing knowledge and highly skilled people,» he explained, so «the
flow of people [out of universities] should be given attention at all levels,» not just at the graduate level where they already perform well.
This approach also encourages learning in the
flow of work by solving actual, day - to - day
business challenges and then sharing the knowledge
produced from solving particular issues.
Investors in Vanguard S&P 500 ETF are getting exposure to 500 of the biggest and most successful
businesses of our time, and chances are that these companies as a group will continue
producing growing earnings and cash
flows for investors over the coming decades, no matter how tough the economic environment in the short term.
Companies with stable
business models, strong balance sheets, and good earnings quality tend to
produce free cash
flows in excess of their reinvestment needs.
Conservatively, the Company appears to
produce $ 25 - $ 35 million of run - rate EBITDA, require approximately $ 9 million in maintenance capital expenditures and have $ 4 - $ 8 million of taxes, interest and preferred dividends in total, leaving $ 12 - $ 18 million of positive free cash
flow annually with which to further invest in the
business and / or amortize debt.
But to answer your question — very generally speaking — my ideal investment is a great operating
business that
produces consistent free cash
flow and high returns on capital that for some reason trades at 10x earnings or so.
In its simplest form, one could buy the company for $ 14, close the unprofitable
business line, and be left with a core
business (bookstores) that
produces $ 4 of free cash
flow.
Just keep it simple, look for obvious situations that you can understand, and try to find
businesses that will grow intrinsic value over time that
produce stable free cash
flow and high returns on capital that are available at cheap prices.
The latter - Barnes and Noble - is a situation where the corporate structure is undervaluing a core
business that
produces significant cash
flow.
I think lost dollars are usually much more difficult to replace in investing than they are in
business, partially because
businesses usually
produce recurring cash
flow.
A
business that
produces cash
flow for you.
Basically, I'm a value investor who views stocks as real
businesses that
produce real cash
flow from real assets.
Investing in the best real estate investments you can find,
businesses, or stocks; assets you invest in that
produce money, and that money is your cash
flow.
AAPL is the glaring exception, but notice how the other three's stock prices have gone basically nowhere in the last 10 years while their
businesses have steadily improved year after year,
producing more sales, more free cash
flow, high book values, buying back shares, and implementing and growing dividend payouts.
Businesses experiencing cash
flow shortages may have difficulty
producing a down payment for a loan.
Most of them are capital light
businesses with high margins, high returns, and remember — they all belong to the exclusive club of companies that have
produced 10 consecutive years of free cash
flow:
We exploit this weakness by focusing on quality:
businesses that generate high and consistent ROIC / ROE, are run by skilled capital allocators, and
produce enough free cash
flow to self - fund growth without excessive leverage or dilution.
If a company can sustain consistently growing dividends over the years, then it needs a solid and resilient
business producing growing cash
flows through all kinds of economic scenarios.
They've put themselves in such a position where the core
business is so attractive and huge that just avoiding a contraction in revenue should allow them to continue to
produce a ton of cash
flow which can
flow down to shareholders.
In addition to acquiring
businesses that
produce large free cash
flow, Roper seeks to improve operating margins by incorporating its governance processes into the
business practices of the acquired company.
Discounted cash
flow analysis uses various inputs and estimates and
produces an «exact
business value».
Outerwall has historically
produced high returns on capital, and it's a
business that doesn't need much tangible capital to
produce huge amounts of cash
flow (an attractive
business), but it has been run similar to companies that get purchased by private equity firms — leverage up the balance sheet, issue a dividend (or buyout some shareholders), thus keeping very little equity «at risk».
The company operates a low - risk
business that
produces substantial free cash
flows.
I think he was thinking about the
business, and the assets it had and the cash
flow it was
producing.
as an owner - operator — we constantly work to increase the value of the assets within our operating
businesses and the cash
flows they
produce through our operating expertise, development capabilities and effective financing.
With a steady revenue stream — backed by more than 136.5 million subscribers to its wireless and other services — the firm
produces abundant free cash
flow (the cash profits generated after making the capital expenditures necessary to maintain the
business).
The science is that given perfect company estimates and your target rate of return, you can easily calculate the objective fair value of any
business or asset that
produces cash
flow.
Discounted Cash Flow Analysis (DCFA) is the fundamental stock valuation method for any asset or
business that
produces cash
flows.
During the next 40 years, greenhouse gas (GHG) emissions in a
business as usual scenario will
produce changes to river
flow.
The Chasm Group, LLC and Chasm Institute, LLC (San Bruno, CA) 1997 — 2008
Business Operations Manager • Managed all daily operational tasks for leading multi-million dollar high - tech market strategy consultancy, while providing executive administration to C - level executives and venture capital partners • Developed and managed the firm's annual budget, proposing and implementing expense cuts, producing monthly reports and financial statements, and coordinating with CPA firm for accurate and timely filings • Oversaw all client relationship management efforts while cultivating new business efforts from concept to implementation, providing high - quality service in sales efforts while utilizing new lead tracking system • Negotiated and managed all contracts, stock grants, and financing arrangements, working closely with outside counsel to draft legal documents and resolve LLC - and proprietary - related issues • Led three office space build - outs and two office relocations, managing all aspects of each process under aggressive timeline and budget expectations • Reduced firm telecom expenses by 22 % by streamlining IT objectives, including migration to VOIP phone system, software / hardware purchases, domain renewals, and outsourced technical support • Directed all phases of staff recruitment while creating and implementing all HR policies and programs, including comprehensive employee benefits plans • Supervised multiple administrative staff members, conducted performance appraisals and wage / salary surveys in comparison to incentive program guidelines, and maintained HR files in accordance with legal mandates • Produced all out - going client invoices in an accurate and timely fashion to increase, cash flow and reduce aging receivables, providing consistent attention to overhead costs and vendor arrangements • Administered all company insurance policies, including E&O, general liability, bonds, partner life and disability, conducting annual benefits reviews and employee / company insurance audits • Obtained necessary certificates for consulting contracts while processing federal, state, and local business reporting requirements to maintain licenses and incorporation status • Directed all marketing efforts and oversaw logistical aspects of national educational workshop series, utilizing sponsorship arrangements to offset production costs • Transformed «brochure» website into a dynamic tool to better illustrate company opportunities through relevant case studies, as well as maintaining all other promotional media, including press kits and video Association of California School Administrators (Burlingame, CA) 1993 — 1997 Issues and Planning Committee Coordinator • Executed all phases of event planning and implementation for a membership - driven organization including 23 state committees, 5 task forces, 6 strategic planning conferences, and a conference of 1,500 attendees • Focused on facility evaluations, bid requests, site visits, contract negotiations, and all pre - and post-conference planning processes • Produced statistical and financial reports, including budget projections and cost monitoring for developmental training efforts • Oversaw all participant - level responsibilities, including inquiries, eligibility, registration, correspondence, and billing statements • Managed all legal professional standards calls for Northern California regions, including the processing of attorney authorizations, the preparation of legal assistance letters, and liens on cause of action • Served as second point of contact for computer inquiries and troubleshooting efforts as well as provided back - up executive administrative support for Executive Director, Committee Chairs, and the State Superintendent of Public Instruction • Held responsibility for software installation and hardware configuration while performing weekly AS / 400 backup and report ge
Business Operations Manager • Managed all daily operational tasks for leading multi-million dollar high - tech market strategy consultancy, while providing executive administration to C - level executives and venture capital partners • Developed and managed the firm's annual budget, proposing and implementing expense cuts,
producing monthly reports and financial statements, and coordinating with CPA firm for accurate and timely filings • Oversaw all client relationship management efforts while cultivating new
business efforts from concept to implementation, providing high - quality service in sales efforts while utilizing new lead tracking system • Negotiated and managed all contracts, stock grants, and financing arrangements, working closely with outside counsel to draft legal documents and resolve LLC - and proprietary - related issues • Led three office space build - outs and two office relocations, managing all aspects of each process under aggressive timeline and budget expectations • Reduced firm telecom expenses by 22 % by streamlining IT objectives, including migration to VOIP phone system, software / hardware purchases, domain renewals, and outsourced technical support • Directed all phases of staff recruitment while creating and implementing all HR policies and programs, including comprehensive employee benefits plans • Supervised multiple administrative staff members, conducted performance appraisals and wage / salary surveys in comparison to incentive program guidelines, and maintained HR files in accordance with legal mandates • Produced all out - going client invoices in an accurate and timely fashion to increase, cash flow and reduce aging receivables, providing consistent attention to overhead costs and vendor arrangements • Administered all company insurance policies, including E&O, general liability, bonds, partner life and disability, conducting annual benefits reviews and employee / company insurance audits • Obtained necessary certificates for consulting contracts while processing federal, state, and local business reporting requirements to maintain licenses and incorporation status • Directed all marketing efforts and oversaw logistical aspects of national educational workshop series, utilizing sponsorship arrangements to offset production costs • Transformed «brochure» website into a dynamic tool to better illustrate company opportunities through relevant case studies, as well as maintaining all other promotional media, including press kits and video Association of California School Administrators (Burlingame, CA) 1993 — 1997 Issues and Planning Committee Coordinator • Executed all phases of event planning and implementation for a membership - driven organization including 23 state committees, 5 task forces, 6 strategic planning conferences, and a conference of 1,500 attendees • Focused on facility evaluations, bid requests, site visits, contract negotiations, and all pre - and post-conference planning processes • Produced statistical and financial reports, including budget projections and cost monitoring for developmental training efforts • Oversaw all participant - level responsibilities, including inquiries, eligibility, registration, correspondence, and billing statements • Managed all legal professional standards calls for Northern California regions, including the processing of attorney authorizations, the preparation of legal assistance letters, and liens on cause of action • Served as second point of contact for computer inquiries and troubleshooting efforts as well as provided back - up executive administrative support for Executive Director, Committee Chairs, and the State Superintendent of Public Instruction • Held responsibility for software installation and hardware configuration while performing weekly AS / 400 backup and report ge
business efforts from concept to implementation, providing high - quality service in sales efforts while utilizing new lead tracking system • Negotiated and managed all contracts, stock grants, and financing arrangements, working closely with outside counsel to draft legal documents and resolve LLC - and proprietary - related issues • Led three office space build - outs and two office relocations, managing all aspects of each process under aggressive timeline and budget expectations • Reduced firm telecom expenses by 22 % by streamlining IT objectives, including migration to VOIP phone system, software / hardware purchases, domain renewals, and outsourced technical support • Directed all phases of staff recruitment while creating and implementing all HR policies and programs, including comprehensive employee benefits plans • Supervised multiple administrative staff members, conducted performance appraisals and wage / salary surveys in comparison to incentive program guidelines, and maintained HR files in accordance with legal mandates •
Produced all out - going client invoices in an accurate and timely fashion to increase, cash
flow and reduce aging receivables, providing consistent attention to overhead costs and vendor arrangements • Administered all company insurance policies, including E&O, general liability, bonds, partner life and disability, conducting annual benefits reviews and employee / company insurance audits • Obtained necessary certificates for consulting contracts while processing federal, state, and local
business reporting requirements to maintain licenses and incorporation status • Directed all marketing efforts and oversaw logistical aspects of national educational workshop series, utilizing sponsorship arrangements to offset production costs • Transformed «brochure» website into a dynamic tool to better illustrate company opportunities through relevant case studies, as well as maintaining all other promotional media, including press kits and video Association of California School Administrators (Burlingame, CA) 1993 — 1997 Issues and Planning Committee Coordinator • Executed all phases of event planning and implementation for a membership - driven organization including 23 state committees, 5 task forces, 6 strategic planning conferences, and a conference of 1,500 attendees • Focused on facility evaluations, bid requests, site visits, contract negotiations, and all pre - and post-conference planning processes • Produced statistical and financial reports, including budget projections and cost monitoring for developmental training efforts • Oversaw all participant - level responsibilities, including inquiries, eligibility, registration, correspondence, and billing statements • Managed all legal professional standards calls for Northern California regions, including the processing of attorney authorizations, the preparation of legal assistance letters, and liens on cause of action • Served as second point of contact for computer inquiries and troubleshooting efforts as well as provided back - up executive administrative support for Executive Director, Committee Chairs, and the State Superintendent of Public Instruction • Held responsibility for software installation and hardware configuration while performing weekly AS / 400 backup and report ge
business reporting requirements to maintain licenses and incorporation status • Directed all marketing efforts and oversaw logistical aspects of national educational workshop series, utilizing sponsorship arrangements to offset production costs • Transformed «brochure» website into a dynamic tool to better illustrate company opportunities through relevant case studies, as well as maintaining all other promotional media, including press kits and video Association of California School Administrators (Burlingame, CA) 1993 — 1997 Issues and Planning Committee Coordinator • Executed all phases of event planning and implementation for a membership - driven organization including 23 state committees, 5 task forces, 6 strategic planning conferences, and a conference of 1,500 attendees • Focused on facility evaluations, bid requests, site visits, contract negotiations, and all pre - and post-conference planning processes •
Produced statistical and financial reports, including budget projections and cost monitoring for developmental training efforts • Oversaw all participant - level responsibilities, including inquiries, eligibility, registration, correspondence, and billing statements • Managed all legal professional standards calls for Northern California regions, including the processing of attorney authorizations, the preparation of legal assistance letters, and liens on cause of action • Served as second point of contact for computer inquiries and troubleshooting efforts as well as provided back - up executive administrative support for Executive Director, Committee Chairs, and the State Superintendent of Public Instruction • Held responsibility for software installation and hardware configuration while performing weekly AS / 400 backup and report generation
Since tenants are needed to enable our properties to
produce cash
flow, quality tenants are the essence of our
business.