Cash Flow Statement Green Flags: • Operating Cash Flow to Sales > 15% • Free Cash Flow growing > 10% • Capex of Net Sales < 15% • SBC of Net Income < 5% • Cash Flow to Debt > 1 What else?

Free cash flow is the driver of shareholder value. $MA with the beast mode free cash flow: FCF margin = 47.2% FCF yield = 2.9% FCF conversion = 108.9% FCF per share = $11.62 FCF 10-yr CAGR growth = 11.44%

12 Financial KPIs every investor should know. 1. Earnings Per Share (EPS) = Net income / Weighted Average Shares Outstanding

Howard Marks on 1st Level Thinking vs 2nd Level: First-level thinking says, “It’s a good company, let’s buy the stock”. Second-level thinking says, “It’s a good company, but everyone thinks it’s a great company, and it’s not. So the stock’s overrated and overpriced; let’s

ROA: Your investment analysis secret weapon. Why? It shows how well companies turn assets into profit, across any industry. High ROA = efficiency. Start using it to pick the best investments without the complexity.

How to measure moats? Use Michael Mauboussin's checklist:

Want to become a better investor? Start reading....

"Capital Returns" offers key insights into capital allocation's impact on investments. Here are top 5 takeaways from the book: 1. Capital Cycle Dynamics 2. Management Incentives' Influence 3. Behavioral Factors' Role 4. Contrarian Opportunities 5. Learn from Real Case Studies

Understanding Dupont Analysis:

Estimated investments needed to meet battery demand h/t Visual Capitalist

Long-term runway for $LLY and $NVO?? h/t Visual Capitalist

Peter Lynch on avoiding slow growers: h/t FinChat