CASHFLOW IS THE FOUNDATION OF VALUE
Most people focus on profit.
Sharpfokus focuses on cashflow.
A simple example explains why.
Imagine you earn a salary each month
and spend less than you earn.
That means you are making a profit.
So far, so good.
Now imagine you use a large amount of cash
to buy a car.
Your monthly profit may still be positive,
but your cashflow has become negative
because cash has left your account.
That negative cashflow must be funded somehow,
either by using existing cash or by borrowing.
That is the difference between profit and cashflow.
Profit tells you whether income exceeds normal costs.
Cashflow tells you what is actually happening to your money.
Companies work exactly the same way.
A company can report healthy profits
while consuming large amounts of cash
through investment, expansion or acquisitions.
If that cashflow remains negative,
shareholders ultimately fund it.
At Sharpfokus, we do not want to own assets
that require our money.
We want to own assets
that generate money for us.
That is why Sharpfokus Research starts with cashflow.
If you would like to discuss your company,
portfolio or research needs,
message Sharpfokus directly on WhatsApp:
Chat with Sharpfokus Research on WhatsApp
Most people focus on profit.
Sharpfokus focuses on cashflow.
A simple example explains why.
Imagine you earn a salary each month
and spend less than you earn.
That means you are making a profit.
So far, so good.
Now imagine you use a large amount of cash
to buy a car.
Your monthly profit may still be positive,
but your cashflow has become negative
because cash has left your account.
That negative cashflow must be funded somehow,
either by using existing cash or by borrowing.
That is the difference between profit and cashflow.
Profit tells you whether income exceeds normal costs.
Cashflow tells you what is actually happening to your money.
Companies work exactly the same way.
A company can report healthy profits
while consuming large amounts of cash
through investment, expansion or acquisitions.
If that cashflow remains negative,
shareholders ultimately fund it.
At Sharpfokus, we do not want to own assets
that require our money.
We want to own assets
that generate money for us.
That is why Sharpfokus Research starts with cashflow.
If you would like to discuss your company,
portfolio or research needs,
message Sharpfokus directly on WhatsApp:
Chat with Sharpfokus Research on WhatsApp