Contrarian with a Cause


Q: Beyond cash flow, is there anything else that we should keep an eye on during this earnings season?

A: Yeah. Receivables growing faster than sales, inventories growing faster than sales, accrued expenses on the balance sheets going down. Look at other assets to see that they're not moving up materially, and compare cash flow to actual earnings. Don't worry about a penny or two, though. Stop getting involved in quarterly numbers, and start thinking about long-term value.


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