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Finding Value in Markets Other Investors Shun with Tom Bachrach, Principal at PFH Capital

Compounders Podcast

CHAPTER

Maintaining Healthy Financials and Evaluating Investments

The chapter explores the significance of healthy financials in portfolio companies, particularly focusing on balance sheets, leverage ratios, and asset quality. It emphasizes the importance of profitability supported by free cash flow and discusses the investor's approach of valuing asset value and margin of safety over growth potential. The chapter also delves into investing strategies in undervalued companies, the importance of a sell discipline in investing, and considerations when investing in commodity-exposed businesses.

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