Unchained · Friday, July 31, 2026
Assessing a company's health requires looking beyond income statement manipulations like expense reductions or stock buybacks, and focusing on the statement of cash flows. This is particularly crucial for growth and value investors, especially when major companies are heavily investing their capital.
“So you can engineer earnings. You cannot engineer the statement of cash flows, right? And so to me, um, maybe not so much as a growth investor, but certainly if you're a value investor, you're looking at that a lot, right?”
“But in this case, where you have the, you know, I'd argue that best run companies on the planet blowing through all of their capex. Funding it to each other or backing deals in a circular fashion. Is a concern?”