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Ep 346. Q&A: Investing Mistakes, Holding Compounders, ROIC, FCF + Growth

Focused Compounding

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Free Cash Flow Growth Over Sales Growth?

If we care about how much cash a company is going to return to us, shouldn't we care about free cash flow growth over sales growth when they differ significantly? I do not believe though that you can use things like earnings per share growth, free cash will go with and whatever one they're higher than sales growth. What we're trying to get at is what will free cash flow grow by in the future.

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