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What we like our CEOs to say

We have read thousands of annual reports of the years. Some good, some bad, some terrific. One of the businesses that we own (which, for compliance reasons, will remain nameless) published an annual letter that contained a few phrases that we love to see. The phrases are below and are all tied around the importance taking care of the business owner (the shareholder). Financial Objective: To maximize intrinsic value per share, defined as (a) the unlevered free cash flow per share that, in our best judgment, will occur between now and the long-term future, appropriately discounted to reflect our cost of capital, minus (b) net debt per share. We manage our business for long-term results, and our quarterly financial results, especially our GAAP results, will often fluctuate, which may lead to volatility in our share price. (As a result) our revenues and operating results often vary significantly from quarter to quarter
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Categories: Strategy.
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