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It’s Hard To Fake Cash Flows

Value investing is not as simple as it sounds. Last week, I explained the importance of using sophisticated value tools such as relative price-to-earnings (P/E) ratios.

But now, we have to look beyond these common tools if we want to take value investing to the next level…

If you invest this way, you must also look closely at what a company is doing with its money. This means checking things like cash flow from operations (CFO).

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This post appeared first on Money & Markets, LLC.