InvestED: The Rule #1 Investing Podcast · Phil Town & Danielle Town

FROM THE VAULT: Understanding Free Cash Flow

·40 min·3 clips
Phil Town reveals why free cash flow is the single most important number for evaluating any business investment.
Phil and Danielle Town provide an educational overview of Rule 1 investing, focusing on the importance of free cash flow over earnings for valuing companies. They explain key concepts like patient money, the investing fiction of owning whole companies, and how to align investments with personal values, while debating the line between investing and speculation.

As heard by us

A calm overview of free cash flow, with Buffett-style investing broken into owner-sized pieces.

Free cash flow is the main point, but the stronger value is the clear, grounded walk-through of Rule 1 Buffett-style investing. Danielle and Phil start from the basics and use a rental-house example to make the difference between cash coming in, cash going out, and cash left…

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Want free cash flow explained with a rental-house example?

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