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What is Dirty Surplus Income?
The Hidden Line Between Accounting Reality and Economic Reality When analyzing a company’s financial health, most investors look to net income. But net income doesn’t always tell the full story. Some gains and losses sneak around the income statement — and that’s where dirty surplus income comes in. The Clean vs. Dirty Surplus Concept In…
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What Is Your Free Cash Flow Per Month?
Introduction Have you ever wondered what the financial health of your personal life looks like? In the world of business, companies use a key metric called Free Cash Flow (FCF) to measure how much money is left after covering all necessary expenses. But what if we applied this idea to personal finance? Understanding your “free…
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What Is Your Moat?:
What Is Moat? “A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns. Therefore, a formidable barrier such as a company’s being the low-cost producer (GEICO, Costco) or possessing a powerful…