--- title: "Meaning & Key Takeaway of: Value investors look at cash flows. If a…" description: "\"Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it’s a good investment. Investors then just hope tha..." image: "https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg" --- # Value investors look at cash flows. If a company can… ![“Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it’s a good investment. Investors then just hope that those cash flows—and thus the company’s value—don’t decrease faster than they anticipate.” quote by Peter Thiel](https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg) [Download](https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg) [Open image](https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg) > “Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it’s a good investment. Investors then just hope that those cash flows—and thus the company’s value—don’t decrease faster than they anticipate.” [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors should focus on sustainable cash flow longevity rather than short‑term gains. **In simple terms:** Look for steady cash flow over years. Key Takeaway Prioritize long‑term cash flow stability. Themes investment valuation cash flow risk management Mood analytical cautious Type strategic financial When to use this quote - private equity analysis - startup funding - corporate finance - portfolio review Key Concepts Financial modeling discounted cash flow value investing Questions to Reflect On - How do you assess cash flow durability? - What risks could shorten cash flow periods? A Different Perspective Cash flow can be disrupted by market shifts, making predictions uncertain. ★ ★ ★ ★ ★ No ratings yet [Anticipate](https://sms4smile.com/quotes/about/anticipate/) [Business](https://sms4smile.com/quotes/about/business/) [Cash](https://sms4smile.com/quotes/about/cash/) [Cash flow](https://sms4smile.com/quotes/about/cash-flow/) [Cash Flows](https://sms4smile.com/quotes/about/cash-flows-2144674/) [Company](https://sms4smile.com/quotes/about/company/) [Company Value](https://sms4smile.com/quotes/about/company-value-615825/) [Customer](https://sms4smile.com/quotes/about/customer/) [Decrease](https://sms4smile.com/quotes/about/decrease/) [Faster](https://sms4smile.com/quotes/about/faster/) [Flow](https://sms4smile.com/quotes/about/flow/) [Ifs](https://sms4smile.com/quotes/about/ifs/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Investment Investors](https://sms4smile.com/quotes/about/investment-investors-5839831/) [Investors](https://sms4smile.com/quotes/about/investors/) [Looks](https://sms4smile.com/quotes/about/looks/) [Value Investors](https://sms4smile.com/quotes/about/value-investors-657821/) [Values](https://sms4smile.com/quotes/about/values/) [Years](https://sms4smile.com/quotes/about/years/) ## Related quotes > [“a great business is defined by its ability to generate cash flows in the future.”](https://sms4smile.com/quotes/peter-thiel/a-great-business-is-defined-by-its-ability-to-generate-cash-flows-in/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [There are great municipal investments out there, but on a blanket basis you have to be really careful about knowing what cash flows are…](https://sms4smile.com/quotes/meredith-whitney/there-are-great-municipal-investments-out-there-but-on-a-blanket/) [Meredith Whitney](https://sms4smile.com/quotes/author/meredith-whitney/) > [The essence of a good investment manager is one who studies a given business and extrapolates the future cash flows that the business is…](https://sms4smile.com/quotes/mohnish-pabrai/the-essence-of-a-good-investment-manager-is-one-who-studies-a-given/) [Mohnish Pabrai](https://sms4smile.com/quotes/author/mohnish-pabrai/) > [“Two of the things to look out for are that operational cash flows should match or be close to profit levels, and current assets…](https://sms4smile.com/quotes/matthew-kidman/two-of-the-things-to-look-out-for-are-that-operational-cash-flows/) [Matthew Kidman](https://sms4smile.com/quotes/author/matthew-kidman/) > [PayPal is a strong business: it has a strong balance sheet and free cash flows, and it will help us take a look at…](https://sms4smile.com/quotes/dan-schulman/paypal-is-a-strong-business-it-has-a-strong-balance-sheet-and-free/) [Dan Schulman](https://sms4smile.com/quotes/author/dan-schulman/) > [“Statements of Cash Flows: Three Examples Case solution - This case presents the announcement of income through three cases of multi-year articulations of money…](https://sms4smile.com/quotes/casesolutionguru/statements-of-cash-flows-three-examples-case-solution-this-case/) [Casesolutionguru](https://sms4smile.com/quotes/author/casesolutionguru/) > [“The intrinsic value of an asset is determined by the cash flows you expect that asset to generate over its life and how uncertain…](https://sms4smile.com/quotes/aswath-damodaran/the-intrinsic-value-of-an-asset-is-determined-by-the-cash-flows-you/) [Aswath Damodaran](https://sms4smile.com/quotes/author/aswath-damodaran/) > [The restructuring theme can be of various kinds. Some amount of debt gets serviced out of cash flows, some gets back-ended and resolved with…](https://sms4smile.com/quotes/chanda-kochhar/the-restructuring-theme-can-be-of-various-kinds-some-amount-of-debt/) [Chanda Kochhar](https://sms4smile.com/quotes/author/chanda-kochhar/) > [Anyone who prefers owning part of your company to being paid in cash reveals a preference for the long term and a commitment to…](https://sms4smile.com/quotes/peter-thiel/anyone-who-prefers-owning-part-of-your-company-to-being-paid-in-cash/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“Most of a tech company’s value will come at least 10 to 15 years in the future.”](https://sms4smile.com/quotes/peter-thiel/most-of-a-tech-company-s-value-will-come-at-least-10-to-15-years-in/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“There are many ways to earn the love of employees. Hamdi Ulukaya, founder of multi-billion dollar yogurt maker Chobani, made headlines when he awarded…](https://sms4smile.com/quotes/brian-de-haaff/there-are-many-ways-to-earn-the-love-of-employees-hamdi-ulukaya/) [Brian de Haaff](https://sms4smile.com/quotes/author/brian-de-haaff/) > [“You’ve probably heard about “first mover advantage”: if you’re the first entrant into a market, you can capture significant market share while competitors scramble…](https://sms4smile.com/quotes/peter-thiel/you-ve-probably-heard-about-first-mover-advantage-if-you-re-the-first/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [I have encountered thousands of value investors over the years and am constantly struck by their differences - and their similarities.](https://sms4smile.com/quotes/whitney-tilson/i-have-encountered-thousands-of-value-investors-over-the-years-and-am/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [I am obsessed with delivering value to investors and winning the game from a personal standpoint.](https://sms4smile.com/quotes/bill-gross/i-am-obsessed-with-delivering-value-to-investors-and-winning-the-game/) [Bill Gross](https://sms4smile.com/quotes/author/bill-gross/) > [When it comes to owning stocks of the best-known businesses in the world, value investors usually feel like children looking through the window of…](https://sms4smile.com/quotes/whitney-tilson/when-it-comes-to-owning-stocks-of-the-best-known-businesses-in-the/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) ## More by Peter Thiel > [People don't want to believe that technology is broken. Pharmaceuticals, robotics, artificial intelligence, nanotechnology - all these areas where the progress has been a…](https://sms4smile.com/quotes/peter-thiel/people-don-t-want-to-believe-that-technology-is-broken/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [If you think about basic science or coming up with new theories of mathematics, these are not the kinds of things which are necessarily…](https://sms4smile.com/quotes/peter-thiel/if-you-think-about-basic-science-or-coming-up-with-new-theories-of/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [I think we have a bubble in the US in government bonds, because of the quantitative easing and the negative real interest rates, and…](https://sms4smile.com/quotes/peter-thiel/i-think-we-have-a-bubble-in-the-us-in-government-bonds-because-of-the/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“Time and decision-making themselves follow a power law, and some moments matter far more than others”](https://sms4smile.com/quotes/peter-thiel/time-and-decision-making-themselves-follow-a-power-law-and-some/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“Today, we exaggerate the differences between left-liberal egalitarianism and libertarian individualism because almost everyone shares their common indefinite attitude. In philosophy, politics, and business,…](https://sms4smile.com/quotes/peter-thiel/today-we-exaggerate-the-differences-between-left-liberal/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [When you already have $150 billion a year in revenues from the iPhone, it's very hard to come up with any new vertical that…](https://sms4smile.com/quotes/peter-thiel/when-you-already-have-150-billion-a-year-in-revenues-from-the-iphone/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“CREATIVE MONOPOLY means new products that benefit everybody and sustainable profits for the creator. Competition means no profits for anybody, no meaningful differentiation, and…](https://sms4smile.com/quotes/peter-thiel/creative-monopoly-means-new-products-that-benefit-everybody-and/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“we have given up our sense of wonder at secrets left to be discovered.”](https://sms4smile.com/quotes/peter-thiel/we-have-given-up-our-sense-of-wonder-at-secrets-left-to-be-discovered/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“Today our society is permeated by the twin ideas that death is both inevitable and random.”](https://sms4smile.com/quotes/peter-thiel/today-our-society-is-permeated-by-the-twin-ideas-that-death-is-both/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“if your company can be summed up by its opposition to already existing firms, it can’t be completely new and it’s probably not going…](https://sms4smile.com/quotes/peter-thiel/if-your-company-can-be-summed-up-by-its-opposition-to-already/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“Is a lukewarm attitude to one’s work a sign of mental health? Is a merely professional attitude the only sane approach?”](https://sms4smile.com/quotes/peter-thiel/is-a-lukewarm-attitude-to-one-s-work-a-sign-of-mental-health-is-a/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [“If you’ve invented something new but you haven’t invented an effective way to sell it, you have a bad business—no matter how good the…](https://sms4smile.com/quotes/peter-thiel/if-you-ve-invented-something-new-but-you-haven-t-invented-an/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [The business model piece is we're always talking about competing more effectively. If you're starting a company or career you don't want to compete.…](https://sms4smile.com/quotes/peter-thiel/the-business-model-piece-is-we-re-always-talking-about-competing-more/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [If you invest in Microsoft or Oracle, or a number of other companies for that matter, you're fundamentally making a bet that there's going…](https://sms4smile.com/quotes/peter-thiel/if-you-invest-in-microsoft-or-oracle-or-a-number-of-other-companies/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [Our economy is broken. I'm not a politician, but neither is Donald Trump. He is a builder, and it's time to rebuild America.](https://sms4smile.com/quotes/peter-thiel/our-economy-is-broken-i-m-not-a-politician-but-neither-is-donald/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) [Explore all 257 Peter Thiel quotes ](https://sms4smile.com/quotes/author/peter-thiel/) ## More Anticipate quotes > [If, as I anticipate, a wide array of personal, portable information/communication devices becomes increasingly important and widespread for information-intensive users, it will be a…](https://sms4smile.com/quotes/tom-peters/if-as-i-anticipate-a-wide-array-of-personal-portable-information/) [Tom Peters](https://sms4smile.com/quotes/author/tom-peters/) > [Assuming normal winter weather, we currently anticipate the coal markets to remain difficult through 2015; while we always strive to operate a full capacity…](https://sms4smile.com/quotes/joe-craft/assuming-normal-winter-weather-we-currently-anticipate-the-coal/) [Joe Craft](https://sms4smile.com/quotes/author/joe-craft/) > [We are somehow the children of the planet, we are somehow its finest hour; we bind time, we bind the past, we anticipate the…](https://sms4smile.com/quotes/terence-mckenna/we-are-somehow-the-children-of-the-planet-we-are-somehow-its-finest/) [Terence McKenna](https://sms4smile.com/quotes/author/terence-mckenna/) > [I like to do everything you can possibly do before you go into rehearsal, because once we are in rehearsal or on the stage…](https://sms4smile.com/quotes/harold-prince/i-like-to-do-everything-you-can-possibly-do-before-you-go-into/) [Harold Prince](https://sms4smile.com/quotes/author/harold-prince/) > [The problem with merely writing so that you can be understood is that the wrong people, in advancing their agendas, are only too ready…](https://sms4smile.com/quotes/william-a-dembski/the-problem-with-merely-writing-so-that-you-can-be-understood-is-that/) [William A. Dembski](https://sms4smile.com/quotes/author/william-a-dembski/) > [I am curious to know what would happen if art were suddenly seen for what it is, namely, exact information of how to rearrange…](https://sms4smile.com/quotes/marshall-mcluhan/i-am-curious-to-know-what-would-happen-if-art-were-suddenly-seen-for/) [Marshall McLuhan](https://sms4smile.com/quotes/author/marshall-mcluhan/) > [The very best financial presentation is one that's well thought out and anticipates any questions... answering them in advance.](https://sms4smile.com/quotes/arthur-helps/the-very-best-financial-presentation-is-one-that-s-well-thought-out/) [Arthur Helps](https://sms4smile.com/quotes/author/arthur-helps/) > [What's interesting about art in public spaces is that the public really sort of takes over and uses it in ways that you didn't…](https://sms4smile.com/quotes/teresita-fernandez/what-s-interesting-about-art-in-public-spaces-is-that-the-public/) [Teresita Fernandez](https://sms4smile.com/quotes/author/teresita-fernandez/) > [The great mistake is to anticipate the outcome of the engagement; you ought not to be thinking of whether it ends in victory or…](https://sms4smile.com/quotes/bruce-lee/the-great-mistake-is-to-anticipate-the-outcome-of-the-engagement-you/) [Bruce Lee](https://sms4smile.com/quotes/author/bruce-lee/) > [If you don't sow your field what harvest other than thorns and weeds can you anticipate?](https://sms4smile.com/quotes/mehmet-murat-ildan/if-you-don-t-sow-your-field-what-harvest-other-than-thorns-and-weeds/) [Mehmet Murat Ildan](https://sms4smile.com/quotes/author/mehmet-murat-ildan/) > [Leaders' careers will usually be determined by their handling of one or two critical events that no one could possibly anticipate or plan for.](https://sms4smile.com/quotes/tom-peters/leaders-careers-will-usually-be-determined-by-their-handling-of-one/) [Tom Peters](https://sms4smile.com/quotes/author/tom-peters/) > [I wish I could anticipate some of the stories and lies that will be told. It's going to be great to get everyone together…](https://sms4smile.com/quotes/larry-conley/i-wish-i-could-anticipate-some-of-the-stories-and-lies-that-will-be/) [Larry Conley](https://sms4smile.com/quotes/author/larry-conley/) > [The two revolutions, I mean the annual revolutions of the declination and of the centre of the Earth, are not completely equal; that is…](https://sms4smile.com/quotes/nicolaus-copernicus/the-two-revolutions-i-mean-the-annual-revolutions-of-the-declination/) [Nicolaus Copernicus](https://sms4smile.com/quotes/author/nicolaus-copernicus/) > [In two or three hundred years life on earth will be unimaginably beautiful, astounding. Man needs such a life and if it hasn't yetappeared,…](https://sms4smile.com/quotes/anton-chekhov/in-two-or-three-hundred-years-life-on-earth-will-be-unimaginably/) [Anton Chekhov](https://sms4smile.com/quotes/author/anton-chekhov/) > [In my own work, I've tried to anticipate what's coming over the horizon, to hasten its arrival, and to apply it to people's lives…](https://sms4smile.com/quotes/paul-allen/in-my-own-work-i-ve-tried-to-anticipate-what-s-coming-over-the/) [Paul Allen](https://sms4smile.com/quotes/author/paul-allen/) [Browse all 458 Anticipate quotes ](https://sms4smile.com/quotes/about/anticipate/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it’s a good investment. Investors then just hope that those cash flows—and thus the company’s value—don’t decrease faster than they anticipate.", "creator": { "@type": "Person", "name": "Peter Thiel" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/peter-thiel/value-investors-look-at-cash-flows-if-a-company-can-maintain-present/", "about": { "@type": "Thing", "name": "Anticipate" }, "@id": "https://sms4smile.com/quotes/peter-thiel/value-investors-look-at-cash-flows-if-a-company-can-maintain-present/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg", "contentUrl": "https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg", "url": "https://sms4smile.com/quotes/i/2d5/peter-thiel-1311_anticipate_value-investors-look-at-cash-flows-if-a_750507.jpg", "width": 1080, "height": 1080, "caption": "“Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it’s a…” — Peter Thiel", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Peter Thiel", "item": "https://sms4smile.com/quotes/author/peter-thiel/" }, { "@type": "ListItem", "position": 4, "name": "Value investors look at cash flows....", "item": "https://sms4smile.com/quotes/peter-thiel/value-investors-look-at-cash-flows-if-a-company-can-maintain-present/" } ], "@id": "https://sms4smile.com/quotes/peter-thiel/value-investors-look-at-cash-flows-if-a-company-can-maintain-present/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```