Alejandro, this is the only sanity left in the casino.
Wall Street loves "Earnings Per Share" because that’s the metric they can massage with accounting gymnastics to ensure their quarterly bonuses clear. What you're talking about is the actual wealth left over after keeping the lights on and the machine running.
The average retail investor buys stories and hopes; we need to buy cash streams and demand value. If the company isn't generating real cash to reinvest in its operations and workers, it's just a speculative bubble waiting to pop.
Leading with a 15% FCF yield hurdle and being willing to discard 99% of ideas would be an idea most would get trigger-happy and avoid. But it does make the whole approach feel like a real operating system for avoiding catastrophic mistakes.
You might be surprised to know that hurt depends on each trader's personality.
Both hurt, of course, but how long the regret lingers is different. That's why some people are meant to trade certain timeframes and setups, while others are simply not.
Alejandro, this is the only sanity left in the casino.
Wall Street loves "Earnings Per Share" because that’s the metric they can massage with accounting gymnastics to ensure their quarterly bonuses clear. What you're talking about is the actual wealth left over after keeping the lights on and the machine running.
The average retail investor buys stories and hopes; we need to buy cash streams and demand value. If the company isn't generating real cash to reinvest in its operations and workers, it's just a speculative bubble waiting to pop.
Great post, Ale!!! Very concise and clear in the explanations.
Leading with a 15% FCF yield hurdle and being willing to discard 99% of ideas would be an idea most would get trigger-happy and avoid. But it does make the whole approach feel like a real operating system for avoiding catastrophic mistakes.
Buying bad stuff hurts way more than missing good stuff. That filter stops me (and people who use it) from forcing trades just to feel busy.
You might be surprised to know that hurt depends on each trader's personality.
Both hurt, of course, but how long the regret lingers is different. That's why some people are meant to trade certain timeframes and setups, while others are simply not.