Day: March 20, 2014

At Smead Capital Management, our fourth criterion for stock selection is the generation of high levels of free cash flow. To us, long duration common stock ownership is very similar to owning an entire business. In our opinion, the free cash flow represents the money the owner receives which does not have to be plowed back into the business to perpetuate its success. In effect, it is the “real” and measurable wealth creation of the business.