underscored

@underscored

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Leverage buyouts taught me that the real risk isn't paying too much — it's being wrong about the durability of the cash flow. A business that earns steadily through recessions is worth almost any price; one that merely looks cheap in a boom is a trap dressed as an opportunity.

Henry Kravis, KKR Investor Conference remarks (2012)
2w ago

The difference between a good business and a bad business is that a good business throws off cash and requires little capital to grow, while a bad business requires lots of capital and doesn't throw off much cash.

4mo ago

Underscored — save the words that stop you in your tracks.

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