Bob Olstein, Chairman and Chief Investment Officer of The Olstein Funds, says investors need to pay more attention a company’s free cash flow, not just its income statement and its reported earnings.
In this, the third of a three-part interview with Bob Olstein, Chairman and Chief Investment Officer of The Olstein Funds, the well-regarded fund manager goes after the Wall Street myth that income statements are all investors need to know about the operations of a company.
Olstein, who has managed money for over four decades, reminds stock buyers that there’s a difference between a company’s income statement and its cash flow statement, both of which get released along with a public company’s balance sheet each quarter.
Why are there two types of statements for companies?
Because under generally accepted accounting principles (GAAP), accounting income isn’t necessarily the same as cash flow. They both serve very important roles in helping investors understand a company’s operations. ButRead More »from Olstein: This is a common mistake investors make