3. Value Discipline
- The purchase of a growing stream of cash flows at a discount to their present value is at the heart of our value approach to capital allocation.
- With an owner-mindset, we use valuation metrics that focus on operating economics and cash flow. We do not require economics and cash flows be stable or predictable in the short-term, but do expect so in the long-term.
- We value management teams that are as disciplined as we are in allocating capital intelligently – using excess cash to repurchase shares opportunistically, distributing cash to shareholders through dividends, or reinvesting in the business.
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