This is understandable where the emphasis is on short - run predictions of stock market prices, and a belief in the primacy of
periodic income or
cash flows from recurring
operations in determining stock market prices.
In the case of investment builders where the Fund owns common stocks, say, Brascan, Catellus and Forest City, it is pretty easy to ascertain
cash flow from operations, but difficult, using GAAP, to ascertain the
periodic wealth creation which is occurring and is such an important component in the appraisal of these securities.