Cash Flow at a Discount

  • Focused on undervalued long-term stream of cash flow
  • Out-of-favor industry/company
  • Quality franchise/management

Case Study: Hewlett-Packard

  • Quality franchise and management
  • Four businesses produce cash: PCs, Servers, Printers, Services
  • Purchased when PC business was losing money
  • Future cash flow under-estimated by market
Hewlett-Packard