Free Cash Flow vs. Owner Earnings

July 14, 2008 by Joe Ponzio

EDIT: This item is no longer available. Please see the book to learn more about owner earnings and free cash flow.

At the end of this post, you’ll find a “Buy Now” button to purchase a 20-page report comparing Free Cash Flow to Warren Buffett’s owner earnings. Though the two terms (free cash flow and owner earnings) are often used interchangeably, they are not always the same. Confusing the two can have a dramatic effect on your intrinsic value calculations.

This report:

  • gives an overview of free cash flow versus owner earnings;
  • thoroughly explains Buffett’s definition and formula for calculating owner earnings;
  • walks the reader through a business – from start-up through Year 3 – to explain the financial statements;
  • looks at General Motors’ free cash flow versus owner earnings and explains why the auto maker is suffering;
  • and more.

Before you pay the hefty $19.95 price tag, please note that this report assumes that the reader has, at the very least, a basic understanding of financial statements. To give you a better idea of whether or not you want / need to purchase and download this report, check out the first three pages for free.

A Note From Joe Ponzio

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