Robert Hagstrom on Warren Buffett, Bill Miller and Finding High Quality Companies
Excess Returns
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You Just Keep the Money. And You Keep Compounding It.
Amazon generates tons of cash. Every single day. Jeff Bezos walks you right through it. You reinvest it back into the company as a free cash flow yield higher than Procter and Gamble. They're going to earn that type of return for the next 10 or 15 years if they do that it's worth a hell of a lot more than 40 times. I mean companies like Amazon certainly taught us that that you can't use those you know if you're going to get that kind of growth the multiple doesn't really matter all that much upfront. If you understand the business and economics of the business, you go, Jeff, you just keep the money. And you just keep compounding it
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