THE CASH POSITION - Deepstash

THE CASH POSITION

Find out how much cash is the company is sitting on 

formula= cash from opertions - Purchases of new plants,machinery etc - Long term debt  = Free cash

Now just divide this cash by number of shares out standing and you will get Free cash per share. 

peter lynch found out that ford had accumulated the $16.30 a share in cash beyond debt, for every share of ford he owned, there was this $16.30 bonus sitting there on paper like some delightful hidden rebate

The $16.30 bonus changed everything. it meant that he bought ford not for $38 a share, but for $21.70 ($38 minus the $16.30 in cash) 

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These are some lessons that peter lynch thought us in one up on wall street

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