Free cash flow per share comes first
“Our ultimate financial measure, and the one we most want to drive over the long-term, is free cash flow per share.”
Investing
Jeff Bezos's 2004 letter to Amazon shareholders, one of the letters in Day 1: The Amazon Shareholder Letters, 1997–2020.
Share value rests on cash flows
“The simple answer is that earnings don’t directly translate into cash flows, and shares ar e worth only the present value of their future cash flows, not the present value of their future earnings.”
Growing earnings can impair shareholder value
“Though some may find it counterintuitive, a company can actually impair shareholder value in certain circumstances by growing earnings. This happens when the capital investments required for growth exceed the present value of the cash flow derived from those investments.”
Cash flow statements deserve more attention
“Cash flow statements often don’t receive as much attention as they deserve. Discerning investors don’t stop with the income statement.”