EPS vs Free Cash Flow vs Owner Earnings | Quality of Earnings

Quality of earnings is extremely important when valuing a company. This video explains Free cash flow vs net income vs owner earnings. Once you've had free cash flow explained to you it will cause you to re-think earnings per share (EPS) and the PE ratio.

Warren Buffet's owner earnings concept was introduced to us in his 1986 letter to shareholders, and this was a time before the cash flows statement as we know it today was yet widely available to investors.

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Special thanks to my incredibly beautiful, smart, and creative girlfriend, Stephanie, for her editing wizardry and creative insights and ideas. Although you do not see her speaking to you in the videos, believe me, she has poured her heart and soul into making this video and the videos on this channel. It's been a 50/50 effort. I don't want to even imagine what these videos would look like without her hard work and creative insights. Thank you.


Disclaimer:
These youtube videos and content are for entertainment purposes only. If stocks or companies are mentioned, Richard may have an ownership interest in them -- DO NOT make buying or selling decisions based on Richard’s videos. All information contained herein should not be construed as anything other than an opinion for entertainment purposes only. Information being provided may be outdated or inaccurate; it is your responsibility to verify all information.
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