Letter # 73 | 1 February 2022 |
The holy grail of consistently superior returns, they say, is “a company that keeps growing revenues and free cash flows”. You find such a business and you keep investing… and the returns just keep flowing.
Well, it sounds nice and easy, but it is not true. In my article in ET today, I debunk that myth. We observe a large business with excellent standing and widespread ownership – the largest beverage company in the world and the second-largest holding of Berkshire.
A very interesting chart (cycles of exuberance and exasperation) that hopefully conveys my point. And surprisingly enough, I think Warren Buffett agrees (at least with his actions).
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