The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market

Great fundamental investors focus on understanding the magnitude and sustainability of free cash flow.  Factors that an investor must consider include where the industry is in its life cycle, a company’s  competitive position within its industry, barriers to entry, the economics of the business, and  management’s skill at allocating ... See more

The implication for investors? Legacy financial metrics should play a lesser role in analyzing businesses.