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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: Reginald Middleton who wrote (196)11/11/1997 1:03:00 PM
From: Pirah Naman  Read Replies (1) of 253
 
> FCF methods do not project FCF's and discount them, DCF methods do.

Then you would characterize the method illustrated in Hagstrom's book on Buffett to be DCF, not FCF?

> a matter of semantics.

If your answer to the above question is yes, then I'd agree it is a matter of semantics. (I would have called the above alluded to method a FCF method.)

> companies that efficiently invest all of thier FCF are worth
> more,

I agree 100%.

> while it appears that many on this thread think that the most FCF > you have, the better.

Certain participants on this thread seem to use FCF as their first screen. We don't know what their process is after that or their decision making hierarchy.
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