Tuesday, May 13, 2008

Save a drowning victim...

Berkshire's philosophy for financial metrics.

CM: One metric catches people. We prefer businesses that drown in cash. An example of a different business is construction equipment. You work hard all year and there is your profit sitting in the yard. We avoid businesses like that.

Reflections on Value Investing: 2008 Berkshire Hathaway Shareholder Meeting: Detailed Notes

Some publicly listed companies that are "drowning in cash" at the moment.

Heidrick & Struggles International Inc. (HSII) - down 40% Y/Y

Cryo-Cell International Inc. (CCEL.OB) - down 68% Y/Y

Apparently swimming in cash is a bit different than drowning in it, as these 0 debt companies seem to indicate.  It's not 0 debt, it's Cash Flow that's King.

Microsoft Corporation (MSFT) - down 3.6% Y/Y

Berkshire Hathaway Inc. (BRK-A) - up 13.5% Y/Y

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