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Ep 364. Q&A: Entertainment, Intrinsic Value, Cyclicals, Dark Stocks, and The Too Hard Pile

Focused Compounding

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What Kind of Business Do I Not Invest In?

A lot of it is stuff that's reverse one year to the next. So for instance, walmart would have increased inventoris a ton, which sucks up a cashlo and then it will have a lot of free cash for next year. It we'll have more casual operations as a result. The said company has a history of producing free cash flow. Last two years had higher free cash flow margins due to positive working capital changes. And this year they had a negative working capital charge.

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