#abolishprofit is the first hashtag movement to really resonate with me in a long time. Profit is an opaque, biased opinion of financial performance. We must optimize for free cash flow and focus on increasing per share value in the long run.
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Replying to @samirsagar1983 @zackkanter
I’m not entirely sure. For very heavy CAPEX businesses (Heavy manufacturing, textile factories), cash flow may work for a while but Depreciation acts like a great dampner from getting carried away. If it’s only cash flow, how do u account for amortisation? (Not sure / so asking)
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Nah—if capex is continuous it approximates D&A; it’s it’s discrete, you just have to sack up and model each big slug of capex separately. Zack is 100% correct here.
11:52 AM - 18 Aug 2018
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