By Simon Black
About a year and a half ago I purchased a fairly large manufacturing business that is oddly enough based in Australia.
It’s been a fantastic investment so far, primarily because it generates so much cashflow relative to the price I paid.
With big public companies listed on a major stock market, it’s not uncommon to pay 20x, 50x, even more than 100x a company’s annual profits.
For example, as I write to you early in the morning here in Manila right now, Amazon’s stock sells for 180x its annual profits.
In other words, if you were theoretically to acquire 100% of Amazon’s shares, at current levels it would take you 180…
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