The best investors don't spend huge amounts of time looking at a company's profits. Instead they spend a lot of time looking at its free cash flow in order to work out how good or bad a company's shares might be as an investment.
By focusing your attentions on free cash flow it is possible to get closer to the truth about a company's financial performance. Too many times investors have learnt the hard way that profits aren’t always real. Free cash flow is a much better way to spot really good companies while keeping you away from the really bad ones. This is what successful investing is all about.
This article is going to show you how to calculate and use free cash flow numbers to: