
495- FROM THE VAULT: Understanding Free Cash Flow
InvestED: The Rule #1 Investing Podcast
Evaluating Business Investments
This chapter discusses the essential criteria for evaluating a business as a potential investment, focusing on free cash flow as a key metric. The speakers clarify the importance of understanding the components of free cash flow and how to extract it from financial statements. They use relatable examples, including the management of rental properties, to illustrate the concept and highlight the differences between financial metrics like earnings per share and actual cash available.
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