The market not only needs multiple voices analyzing mutual funds, but also holdings-based research that offers an alternative to Morningstar’s backward-looking ratings. The more voices we have in the market, the healthier it will be.
In truth, neither AMZN’s $5.5 billion of operating cash flow nor the $1 billion in free cash flow that bulls claim reflect the actual economics of the business.
The second step to gauge the value of a company is to determine the sum of all cash that has been invested in a company over its life without regard to financing form or accounting name. We call this Invested Capital.