Reward 500 Tiger-coinsEarnings season is here—are you only watching AI, semiconductors, and high-growth names?
But take a look at $Coca-Cola(KO)$ — profits are rock-solid; and $Amazon.com(AMZN)$ ? It’s actually the worst-performing stock among the Magnificent 7 this year.
So here’s the real question — while everyone’s chasing “growth,” are these ignored, cash-rich “old-school stocks” secretly setting up for a year-end breakout? 🧐
At Berkshire Hathaway’s 1994 shareholder meeting, Buffett said something worth remembering: $Berkshire Hathaway(BRK.B)$
“We can perfectly well buy businesses that don’t grow at all. If the return is satisfactory, we’ll gladly own them.”
He gave a simple example:
An account with 10% annual return but no capital growth,
vs. an account with 2% annual return that grows 10% each year.
After ten years, the first one pays back your principal early and keeps printing profit; the second one looks prettier on paper but delivers far less real cash.
That’s exactly what Buffett values most: Free Cash Flow and Capital Recovery Speed.
📈 If a company can generate tons of cash every year without heavy capital spending — that’s basically owning a money-printing machine.
Even with zero growth, the cash flow alone can keep compounding your wealth.
Look at Buffett’s bet on Japan’s five major trading houses:
Combined net profit: ¥3.8 trillion (~$25B USD),
Free cash flow: ¥3 trillion,
All light-asset businesses.
As Buffett put it:
“Some of our best businesses don’t grow, but they generate so much cash that we can use it to buy other assets.”
That’s the magic of boomer stocks — Not companies selling stories, but companies paying you real cash. 💰
⚡ With oil prices rebounding, energy names like $Occidental(OXY)$ are heating up again.
Coca-Cola and P&G, the classic cash cows, are quietly outperforming too.
When growth stocks get overcrowded near bubble levels, steady cash flow and low-valuation giants might just become the next surprise winners.
Buffett also said:
“There isn’t only one way to invest — but there are some very useful ones.”
Peter Lynch beat Wall Street by investing in what he saw in daily life, Buffett won by harvesting cash flow. There’s no single “right” path — the real key is whether you can spot value where others can’t.
💬 Let’s Discuss:
1️⃣ Which stock today best represents a true “boomer stock”?
2️⃣ If you could hold only one high-cash-flow, low-growth stock forever, which would it be?
3️⃣ Do you prefer buying “story stocks” or “cash-paying” ones?
Leave your comments to win tiger coins~
Comments
Coca-Cola (KO) perfectly fits the title — slow growth, steady dividends, and timeless global demand. It’s not exciting, but it’s reliable. Other contenders: Johnson & Johnson, Procter & Gamble, and McDonald’s — all built on consistency, not hype.
2️⃣ One High-Cash-Flow, Low-Growth Stock to Hold Forever:
Berkshire Hathaway (BRK.B). It’s like owning a diversified portfolio of old-economy cash machines — insurance, utilities, railroads — with Buffett’s discipline keeping capital productive. It may not soar, but it rarely stumbles.
3️⃣ Story Stocks vs. Cash-Paying Stocks:
I prefer cash-paying stocks. They reward patience with tangible returns, especially in volatile markets. Story stocks are fun but fragile — narrative fades, fundamentals stay. Best strategy: hold a few story-driven names for excitement, but anchor wealth in cash-flow giants that pay you to wait.
Warren Buffett declared : We can perfectly well buy businesses that don't grow at all. If the business is satisfactory we will gladly own them.
Translation? If the cash gushes & the capex is low, you have got a financial geyser. If a company prints money without needing to reinvent itself every quarter, it is not boring, it is beautiful.
DBS fits Buffett model of high cash flow & eternal compounding.
Dividend Royalty : DBS yields over 4%, paid out every quarter.
DBS is a cash flow machine. With net profit crossing SGD 2.5 billion per quarter, DBS does not chase growth. It commands it.
DBS CET1 ratio is 15.2% - fortress grade.
DBS is the kind of stock that I would hold forever. No drama, just deposits & dividends.
DBS is my favourite cash cow.
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