Hi all - this is my first post on the Bogleheads forum and I'm excited to join the community!
For many years now, I've used a mixture of Tom and David Gardner's approach to investing as outlined in The Motley Fool Investment Guide. One of the components I look at is whether a company operate its business in the next three years without relying on external funding. No guidelines are provided on how to do this, so I've played with various approaches over the years. Currently I'm using a simple approach looking at projected Free Cash Flow compared to projected Total Current Liabilities. If projected FCF is greater than projected Current Liabilities, I assume the company can operate without external funding.
I'm curious how others might approach this, as well as thoughts on my current method and if there are better ways to evaluate. My overall goal is to keep it simple.
Thanks!
Matty
For many years now, I've used a mixture of Tom and David Gardner's approach to investing as outlined in The Motley Fool Investment Guide. One of the components I look at is whether a company operate its business in the next three years without relying on external funding. No guidelines are provided on how to do this, so I've played with various approaches over the years. Currently I'm using a simple approach looking at projected Free Cash Flow compared to projected Total Current Liabilities. If projected FCF is greater than projected Current Liabilities, I assume the company can operate without external funding.
I'm curious how others might approach this, as well as thoughts on my current method and if there are better ways to evaluate. My overall goal is to keep it simple.
Thanks!
Matty
Statistics: Posted by mattyb5000 — Tue Jan 02, 2024 12:09 pm — Replies 0 — Views 59