John Malik
opinion

Own the Cash Flow, Not the Price

Own the Cash Flow, Not the PriceOwn the Cash Flow, Not the Price
Believe
3
Investing in the stock market gives retail investors the ability to invest in the price appreciation of underlying assets (i.e., US-based public companies).
1 believer
However, many companies do not pay a dividend at a high enough yield to enable a meaningful payback period.
1 believer
As a result, corporate finance departments advise Boards and CEOs to buyback shares.
1 believer
This creates an increase in the stock price.
1 believer
This attracts and retains investors.
1 believer
The alternative is to own an entire business.
You can allocate excess cash flow into other cash-generating projects, or pay yourself dividends on a quarterly or annual basis.
1 believer
This lets you pay dividends at any yield rate.
You can allocate excess cash flow into other cash-generating projects, or pay yourself dividends on a quarterly or annual basis.
1 believer
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