I searched the words “cash-rich stocks” and came up with almost 7,500 results.
Everybody is looking for companies that have lots of cash, little debt, high free cash flow generation and solid margins. That’s especially true when the economy is teetering on the brink of disaster.
The problem is that everyone’s definition of what makes a company cash-rich is different. And then, there’s also the problem of comparing one industry to another. Some industries are notoriously cash-intensive, while others can be run on pennies.
I’m exaggerating, of course. The point is, you say TOW-MATE-O, and I say TO-MAT-O. We’re not going to have the same definition.
For me, the companies that are cash-rich are those that convert as much free cash flow as possible from net income and have more cash than total debt on their balance sheet. Margins, while important, aren’t as critical as the ability to generate cash. End of story.
Editor's Note: You Could Make Your Portfolio “Recession-Proof” with This System
- Facebook (NASDAQ:FB)
- Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)
- Electronic Arts (NASDAQ:EA)
- Alibaba (NYSE:BABA)
- Monster Beverage (NASDAQ:MNST)
- Texas Pacific Land Trust (NYSE:TPL)
- SEI Investments (NASDAQ:SEIC)
- Intuitive Surgical (NASDAQ:ISRG)
- Veeva Systems (NYSE:VEEV)
- Universal Display (NASDAQ:OLED)
To create some diversification on my list, I’ve tried to select companies from several different sectors and not just technology. Happy investing!
Related: Legend Who Bought Apple at $1.42, Amazon at $48 Says Buy TaaS Now
Hi, Whitney Tilson here.
I made my mark on Wall Street over the past 20 years by starting my first hedge fund with just $1 million… which I ultimately grew into a series of funds worth more than 200 times that amount.
Along the way I met Presidents Clinton and Obama… have been asked to speak at the most prestigious business schools (like Harvard, Columbia, and Wharton)… and was fortunate to identify some of the best investments in the world, in the very early stages, including…
- Netflix when it was $7.78 a share (today it’s worth 4,800% more)
- Apple at $1.42 (it’s up 18,000% since then)
- Amazon at $48 (it’s up 4,000% since then)
I’m writing today because my team and I have found what we believe will be the next big tech trend that will make investors rich.
It’s called TaaS—and if you haven’t yet heard of this technological breakthrough, you soon will.
Over the next few years, TaaS will change the way you eat, shop, work, and travel. It will change the value of our homes and where we live. It will radically alter prices for airline and train tickets, gas, and even household goods. It could even help slow the spread of the coronavirus… and help get the American economy moving again.
Along the way, it could make you a small fortune.
Look, this is going to be the biggest trend affecting you and your money over the next few years—yet most Americans don’t have a clue.
And that’s why I’m going public today with the full story. Prior to the coronavirus, I traveled around America and the world for months (more than a dozen trips in the past six months), talking to every expert I could find.
I’ve put everything you need to know in a simple presentation, where you’ll even learn the name and stock symbol of my favorite TaaS investment in the world today.
No subscription, e-mail address, or credit card required.
You can watch or read my presentation for free right now. We’ve posted it on my research firm’s website, right here…
Best regards,
Whitney Tilson
CEO and Founder, Empire Financial Research
P.S. It’s not all good news, however. TaaS is going to cause a lot of people to lose money too. Dozens of well-known businesses will go bankrupt. But the truth is, the positive effects of this radical development far outweigh the negatives. Get the facts for yourself. Make sure you’re not on the wrong side of this trend. Click here to see my brand-new analysis…
