What's Your Free Cash Flow?

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

A number of fast growing companies don't produce free cash flow. Yi think that gets to the hardess of the question yh resy. Theyre into the n of all maintenance expenditures. Then we're not interested in what are they spending on growther. And sowe looking a net flicks in that view, then you have to look at this 20 billion dollars that they spent last year and which is growing every year.

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: