In 2010, a newspaper interviewed a money manager who claimed the mantle of a fundamental investor. He
Question:
In 2010, a newspaper interviewed a money manager who claimed the mantle of a fundamental investor. He laid out his investment philosophy: He "seeks companies that are likely to generate strong cash flows yet are priced very cheaply." "Cash is king," he says so he is investing in Intel, Microsoft, Macy's, DuPont, Xerox, and Radio Shack, firms with significant amounts of cash. Critique his approach.
Step by Step Answer:
A profitable company can generate a lot of free cash flo...View the full answer
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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