The Elephant in the Room

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Net flik has negative free cash. How does that square with everything you've taught us for years? Its really so. I would go through it with starting with understanding the meaning of the company, then going to the whether or not it has a mote. And if we can get to some understanding about how that might be, ok, then i think we can come back and say, all rigt, well, let's understand the business. Teo new stacys mend and all.

After a long-awaited couple of weeks, this week on InvestED, Phil and Danielle are digging into the big investing question mark: Netflix.

On the surface, the technology and entertainment company seems to be doing well, however, there’s one big elephant in the room: it doesn’t have free cash flow.

This is a huge red flag in the world of Rule #1 Investing, and something that typically leads Warren Buffett and Charlie Munger to avoid investing in a company. But that doesn’t necessarily mean Netflix isn’t a good investment opportunity.

Join Phil and Danielle this week as they dig into how to understand a complicated company like Netflix and how to decide if it’s the right investment for your portfolio and long-term success.

To learn more about what types of questions to ask and what you need to understand to invest with success, download Phil’s 4 M’s to Successful Investing Guide: https://bit.ly/3zzKVOd

Resources Discussed: