You can have a lot of profit, but not have a lot of free cash flow.
A brilliant read breaking down Free Cash Flow (FCF) and how it calls the shots on growth, more than 'profit' does.
commoncog.com/blog/chinese-b
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Don't you think it would be impossible even for buffet to build a 450 billion dollar empire with fcf alone. Because if a company has fcf it would be priced into valuation no?
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Maybe I should have written “Buffett buys companies with good FCF at cheap or reasonably cheap prices” — but then that distracts from the point I’m making about FCF, and it only covers prices. Buffett’s MO is more complex than FCF and price, of course.