{"id":3669,"date":"2022-12-15T18:18:43","date_gmt":"2022-12-15T17:18:43","guid":{"rendered":"https:\/\/monocle.lu\/?p=3669"},"modified":"2022-12-19T11:31:50","modified_gmt":"2022-12-19T10:31:50","slug":"follow-the-cash","status":"publish","type":"post","link":"https:\/\/monocle.lu\/en\/2022\/12\/15\/follow-the-cash\/","title":{"rendered":"Follow the cash"},"content":{"rendered":"<p><iframe src=\"https:\/\/player.rss.com\/tutovalo\/749130\" style=\"width: 100%\" title=\"Le Billet de Monocle\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><a href=\"https:\/\/rss.com\/podcasts\/tutovalo\/749130\/\">Le Billet de Monocle &#8211; Follow the cash | RSS.com<\/a><\/iframe><\/p>\n<p>This week, we follow the advice of Warren Buffet.<\/p>\n<p>His thesis: a good company creates value and generates cash flows. These flows must be easily identifiable. Whether they are returned to shareholders or reinvested in the company.<\/p>\n<p>Practical application with <span style=\"color: #ff0000;\"><strong>Coca-Cola<\/strong><\/span> (cumulative figures since 2010) :<\/p>\n<p>- $520 billion in revenue collected<\/p>\n<p>- $370 billion in general costs (raw materials, manufacturing, distribution, etc)<\/p>\n<p>- $30 billion in other costs (interest, taxes, etc)<\/p>\n<p>- and finally, $30 billion in investments (machines, factories, acquisitions and disposals of companies, etc.)<\/p>\n<p><u>Results <\/u>: <strong>almost $90 billion<\/strong> of cash generated by the company.<\/p>\n<p>How does Coca-Cola use this surplus? It gives it back to you. All of it. Via $60 billion in accumulated dividends and $20 billion in share buybacks.<\/p>\n<p>Same reasoning with <span style=\"color: #ff0000;\"><strong>Netflix <\/strong><\/span>(figures also accumulated since 2010):<\/p>\n<p>- $160 billion collected from its customers<\/p>\n<p>- $60 billion in general costs (marketing, R&amp;D, administration, etc)<\/p>\n<p>- 10 billion in other costs (interest, taxes, etc)<\/p>\n<p>- and, brace yourself: <strong>$104 billion<\/strong> spent on additional content on the platform<\/p>\n<p><u>Results<\/u> : <strong>$14 billion deficit<\/strong> (including $1.3 billion over the last twelve months).<\/p>\n<p>And no return to the shareholder. It's not surprising. Netflix has taken us from a world where a DVD is worth 15\u20ac to a world where you get almost 6,000 series and films for 8\u20ac a month.<\/p>\n<p>Fantastic for the user. A little less so for the company. Especially when competition is increasing: the only way to keep customers is to spend massively on content.<\/p>\n<p>In the case of companies that reinvest the flows generated (such as Netflix, which invests in its catalogue), it is important to ensure that these reinvestments bear fruit and generate growth. This is a difficult point to validate at Netflix, which has been stagnant in terms of subscriber numbers for a few quarters.<\/p>\n<p>A company that does not pay out to its shareholders but grows its market share and margins can be an excellent investment vehicle, as can a company that does not grow but pays out its profits in dividends.<\/p>\n<p><strong>Follow the cash.<\/strong><\/p>\n<p>A good exercise to realise how much value a company generates or not.<\/p>\n<hr \/>\n<p><strong>Market and portfolio focus<\/strong><\/p>\n<p><strong>Behaviour:<\/strong><\/p>\n<p>Sur la semaine (du 6\/12 au 13\/12), le fonds reprend +1.9% tandis que le Nasdaq progresse de +1.5%. Notre performance s&rsquo;explique par la progression des titres Pfizer (+ 7% sur la semaine) et BioNTech ainsi que par notre position dans l&rsquo;obligation perp\u00e9tuelle SAS Airlines.<\/p>\n<p><strong>Lines:<\/strong><\/p>\n<p>BioNTech: we reduced the line from 2.5% to 1.5% of the fund yesterday after the sharp rise in the price. We are crystallising our profits and gaining agility on the stock.<\/p>\n<p>Have a great week,<br \/>\nPierre<\/p>","protected":false},"excerpt":{"rendered":"<p>Le Billet de Monocle &#8211; Follow the cash | RSS.com Cette semaine, on suit les conseils de Warren Buffet. Sa th\u00e8se : une belle entreprise cr\u00e9e de la&#8230;<\/p>","protected":false},"author":8,"featured_media":3670,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-le-billet-de-monocle"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Monocle - Follow the cash<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Monocle - Follow the cash\" \/>\n<meta property=\"og:description\" content=\"Le Billet de Monocle &#8211; Follow the cash | RSS.com Cette semaine, on suit les conseils de Warren Buffet. Sa th\u00e8se : une belle entreprise cr\u00e9e de la...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/monocle.lu\/en\/2022\/12\/15\/follow-the-cash\/\" \/>\n<meta property=\"og:site_name\" content=\"Monocle\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-15T17:18:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-19T10:31:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/12\/CouvFollowthecash.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1159\" \/>\n\t<meta property=\"og:image:height\" content=\"769\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"L&#039;\u00e9quipe Monocle\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"L&#039;\u00e9quipe Monocle\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/\"},\"author\":{\"name\":\"L'\u00e9quipe Monocle\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/#\\\/schema\\\/person\\\/f095305e6c0f0cb67a0905de33670595\"},\"headline\":\"Follow the cash\",\"datePublished\":\"2022-12-15T17:18:43+00:00\",\"dateModified\":\"2022-12-19T10:31:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/\"},\"wordCount\":504,\"publisher\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/monocle.lu\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/CouvFollowthecash.png\",\"articleSection\":[\"Les Billets de Monocle\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/\",\"url\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/\",\"name\":\"Monocle - Follow the cash\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/monocle.lu\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/CouvFollowthecash.png\",\"datePublished\":\"2022-12-15T17:18:43+00:00\",\"dateModified\":\"2022-12-19T10:31:50+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#primaryimage\",\"url\":\"https:\\\/\\\/monocle.lu\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/CouvFollowthecash.png\",\"contentUrl\":\"https:\\\/\\\/monocle.lu\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/CouvFollowthecash.png\",\"width\":1159,\"height\":769},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/2022\\\/12\\\/15\\\/follow-the-cash\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Rethink the way you train\",\"item\":\"https:\\\/\\\/monocle.lu\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Follow the cash\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/#website\",\"url\":\"https:\\\/\\\/monocle.lu\\\/\",\"name\":\"Monocle\",\"description\":\"Asset Management\",\"publisher\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/monocle.lu\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/#organization\",\"name\":\"Monocle\",\"url\":\"https:\\\/\\\/monocle.lu\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/monocle.lu\\\/wp-content\\\/uploads\\\/2022\\\/03\\\/logo.svg\",\"contentUrl\":\"https:\\\/\\\/monocle.lu\\\/wp-content\\\/uploads\\\/2022\\\/03\\\/logo.svg\",\"width\":152,\"height\":37,\"caption\":\"Monocle\"},\"image\":{\"@id\":\"https:\\\/\\\/monocle.lu\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/monocle.lu\\\/#\\\/schema\\\/person\\\/f095305e6c0f0cb67a0905de33670595\",\"name\":\"L'\u00e9quipe Monocle\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8f5b1ac2bd644098edce052a3a3d754307488f9a55621278d21120dbcbc7d03f?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8f5b1ac2bd644098edce052a3a3d754307488f9a55621278d21120dbcbc7d03f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8f5b1ac2bd644098edce052a3a3d754307488f9a55621278d21120dbcbc7d03f?s=96&d=mm&r=g\",\"caption\":\"L'\u00e9quipe Monocle\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Monocle - Follow the cash","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_GB","og_type":"article","og_title":"Monocle - Follow the cash","og_description":"Le Billet de Monocle &#8211; Follow the cash | RSS.com Cette semaine, on suit les conseils de Warren Buffet. Sa th\u00e8se : une belle entreprise cr\u00e9e de la...","og_url":"https:\/\/monocle.lu\/en\/2022\/12\/15\/follow-the-cash\/","og_site_name":"Monocle","article_published_time":"2022-12-15T17:18:43+00:00","article_modified_time":"2022-12-19T10:31:50+00:00","og_image":[{"width":1159,"height":769,"url":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/12\/CouvFollowthecash.png","type":"image\/png"}],"author":"L'\u00e9quipe Monocle","twitter_card":"summary_large_image","twitter_misc":{"Written by":"L'\u00e9quipe Monocle","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#article","isPartOf":{"@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/"},"author":{"name":"L'\u00e9quipe Monocle","@id":"https:\/\/monocle.lu\/#\/schema\/person\/f095305e6c0f0cb67a0905de33670595"},"headline":"Follow the cash","datePublished":"2022-12-15T17:18:43+00:00","dateModified":"2022-12-19T10:31:50+00:00","mainEntityOfPage":{"@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/"},"wordCount":504,"publisher":{"@id":"https:\/\/monocle.lu\/#organization"},"image":{"@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#primaryimage"},"thumbnailUrl":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/12\/CouvFollowthecash.png","articleSection":["Les Billets de Monocle"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/","url":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/","name":"Monocle - Follow the cash","isPartOf":{"@id":"https:\/\/monocle.lu\/#website"},"primaryImageOfPage":{"@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#primaryimage"},"image":{"@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#primaryimage"},"thumbnailUrl":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/12\/CouvFollowthecash.png","datePublished":"2022-12-15T17:18:43+00:00","dateModified":"2022-12-19T10:31:50+00:00","breadcrumb":{"@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#primaryimage","url":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/12\/CouvFollowthecash.png","contentUrl":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/12\/CouvFollowthecash.png","width":1159,"height":769},{"@type":"BreadcrumbList","@id":"https:\/\/monocle.lu\/2022\/12\/15\/follow-the-cash\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Rethink the way you train","item":"https:\/\/monocle.lu\/"},{"@type":"ListItem","position":2,"name":"Follow the cash"}]},{"@type":"WebSite","@id":"https:\/\/monocle.lu\/#website","url":"https:\/\/monocle.lu\/","name":"Monocle","description":"Asset Management","publisher":{"@id":"https:\/\/monocle.lu\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/monocle.lu\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/monocle.lu\/#organization","name":"Monocle","url":"https:\/\/monocle.lu\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/monocle.lu\/#\/schema\/logo\/image\/","url":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/03\/logo.svg","contentUrl":"https:\/\/monocle.lu\/wp-content\/uploads\/2022\/03\/logo.svg","width":152,"height":37,"caption":"Monocle"},"image":{"@id":"https:\/\/monocle.lu\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/monocle.lu\/#\/schema\/person\/f095305e6c0f0cb67a0905de33670595","name":"L'\u00e9quipe Monocle","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/secure.gravatar.com\/avatar\/8f5b1ac2bd644098edce052a3a3d754307488f9a55621278d21120dbcbc7d03f?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8f5b1ac2bd644098edce052a3a3d754307488f9a55621278d21120dbcbc7d03f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8f5b1ac2bd644098edce052a3a3d754307488f9a55621278d21120dbcbc7d03f?s=96&d=mm&r=g","caption":"L'\u00e9quipe Monocle"}}]}},"_links":{"self":[{"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/posts\/3669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/comments?post=3669"}],"version-history":[{"count":0,"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/posts\/3669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/media\/3670"}],"wp:attachment":[{"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/media?parent=3669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/categories?post=3669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/monocle.lu\/en\/wp-json\/wp\/v2\/tags?post=3669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}