💰EBITDA vs Net Income vs Free Cash Flow Explained Simply


Hey Reader,

Did you know that before becoming a full-time investor, Mohnish Pabrai founded an IT consulting and systems integration company, TransTech, Inc., in 1991? He grew it from scratch and sold it in 2000 for $20 million, which became the seed money for his investment fund.

In today's issue:

  • EBITDA vs Net Income vs Free Cash Flow
  • Learning how to sell a company, one of the biggest pain points in investing
  • How to read a 10-k in less than 30 minutes
  • Much more......

💸Sponsored by:

I've been reflecting on what truly influences us—whether in our roles as parents, partners, or investors. In Skin in the Game, Nassim Taleb highlights how we're drawn to those who invest in their beliefs, like Elon Musk and Warren Buffett, who have their wealth and reputations on the line.

This principle of having "skin in the game" is crucial when choosing investments. It's about trusting leaders who are as invested in their companies as you are. If they aren't, it's a red flag.

Andrew embodies this principle. His Real Money Portfolio is built on the same convictions, investing alongside us with transparency and integrity. His monthly picks are not just recommendations; they're part of his own investment journey.

With Value Spotlight's School of Investing, you learn directly from Andrew's real-world experience. Our lessons are crafted from his meticulous research and stock picks, providing you with insights and strategies that have been tested in the market.

Value Spotlight

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My Favorite Finds

EBITDA vs Net Income vs Free Cash Flow explained simply as only Brian Feroldi can.

One of the hardest questions to answer when investing is when to sell. Here is a good approach.

Patience is a virtue, and learning not to do anything in investing can lead to great gains, but it is HARD.

10 investing ratios to help you become a better investor.

Youtube playlist of Aswath Damodaran breaking down the lessons from his latest book, The Corporate Life Cycle.

Michael Mauboussin's collection of writings and podcasts from 2017 -2020. Good weekend reading.


📖Knowledge Tidbits


Thanks,
Dave Ahern
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