Tom Cole says you should toss out the old fundamentals, like book value, and look at a different one more attuned to the 21st century. Works for him.
What is the measure of a company’s worth? If you are like most investors, you look first to book value, earnings and dividends. Take those three metrics with a grain of salt, says Chicago money manager Thomas Cole. He says you’re better off appraising, instead, how much loose cash a business generates from its operations.
With help from two partners, Cole has turned the simple statistic of free cash flow into a rapidly successful stock picking operation. In a little over four years their Distillate Capital Partners has attracted not quite $1 billion to its main fund while comfortably outpacing the market average.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased