Mauboussin on Strategy : What You See and What You Get

Michael Mauboussin, Chief Investment Strategist of Legg Mason Capital Management, released his latest report "What You See and What You Get - Why Cash Flows Are More Important Than Earnings" on July 23, 2007.

Here is highlight of the report :

• A company’s value equals the present value of future cash flows.
• While convenient, earnings provide limited information about future cash flows.
• Our analysis of the DJIA suggests cash flows remain very healthy.
• The ongoing shift to an intangible-based economy renders earnings even less useful.
  

Direct Link (PDF) - What You See and What You Get : Why Cash Flows Are More Important Than Earnings.

And here is audio link or you can listen directly below.