Free Cash Flow Matters

We believe free cash flow analysis is the best way to understand a company's economic situation and proposition as a potential investment. Accounting earnings (GAAP earnings) can be manipulated through accounting conventions, methods, estimates and so on. We prefer to study and understand how a company's cash is sourced, allocated, expended and recaptured. We also...

Diversification in three dimensions.

Maintaining investment diversification is critical to long-term investing success. At Patrumin we look carefully at diversification in three dimensions when we construct portfolios.  They are:
  1. It should have sector diversification--exposure to multiple sectors and industries in the economy
  2. It should have capital structure diversification--exposure to companies that do and do not utilize long-term debt
  3. It...

We Prefer A Multicap Approach

When constructing portfolios, we have long thought an approach that considers companies of all sizes was the best way to maximize the opportunity set for investors. We are think that by limiting a portfolio to invest in only large cap companies misses many emerging opportunities in the midcap and smallcap arena. Patrumin's Sam Dedio has...