Value Investing c2026:
โ$90? Wow, look how cheap this is! Itโs only 9x cash flow. Yes, the growth is low, but itโs durable growth and itโs buying back stock hand over fist.
#Compounder
โOh, now revenue growth is slowing? Good news is, at 8x cash flow, itโs cheaper than ever. And at least that CF is still growing a little. $81.
โOh, cash flow is stagnating too? Now itโs 7x cash flow. Crazy cheap! Keep buying back those shares, Boss. $72.
โOh, the company needs to reinvest margins to stabilize top-line declines? Sure, now cash flow is 20% lower, but the multiple is holding in at 6x on that lower cash flow. And my Lord, look at the share buybacks. These losses hurt, but this is so cheap. With these buybacks, I might eventually own the last share - Iโm finna be rich. $48.
โOh, now you have to stop buybacks and repay debt, pushing out shareholder returns for 2 years? Thatโs fine because itโs so cheap: only 5x the smaller cash flow. $40.
โThese declines are temporary - our new CEO will right the ship. And I get all this for $36?! Graham and Dodd would be proud. I bet this is what Buffett felt like in โ74.โ