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Rick Sullivan 🦆's avatar

Kevin, this is how you actually do research: less guru-speak, more granular data. Bravo.

Two things jumped out at me:

1 - The FCF yield dominance confirms what we old wolves have known since before Buffett grew the gut. You buy free cash flow rather than dreams.

2 - The finding that capital allocation and financial health were insignificant in the multibagger model? Counterintuitive. But maybe not! When you're small, cheap, and profitable, the runway does the heavy lifting.

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Kevin's avatar

Thank you! I'm going to reach out to the researcher because I have a lot of questions. And the one you mentioned is one of them. In addition, earnings growth is not a significant factor. That's weird.

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Manu Invests's avatar

Appreciate the article. Good stuff

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Kevin's avatar

I appreciate your comment 😉

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Niels's avatar

Great article. Happy I subscribed to you instead of some rather mainstream people that kind of rehash eachothers ideas. Looking forward to the next articles.

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Kevin's avatar

Thanks for the kind comment!

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