During his recent interview with Lex Fridman, Jeff Bezos discussed the importance of critically examining metrics and not blindly relying on them as accurate reflections of reality. Businesses rely on metrics as proxies for things like customer happiness, efficiency, etc. However, these metrics can become outdated or inaccurate over time. … Read More
Jeff Bezos: Investors Should Focus On Free Cash Flow, Not Earnings
In Jeff Bezos’ 2004 Annual Shareholder Letter, he provided a great lesson for investors on the importance of focusing on free cash flow, as opposed to earnings. Here’s an excerpt from that letter: Our ultimate financial measure, and the one we most want to drive over the long-term, is free … Read More