To assess the **Free Cash Flow (FCF)** of each of these companies, here’s an overview of the importance of **FCF** and how it reflects on your portfolio: ### What is Free Cash Flow (FCF)? - **FCF** represents the cash a company generates after accounting for capital expenditures (CapEx). It's crucial because it shows how much cash a company can generate to pay dividends, buy back shares, reduce debt, or reinvest in the business. Here’s a high-level look at FCF for each company based on their latest financials: ### 1. **Synopsys (SNPS)** - **FCF**: Positive, driven by steady revenue and low CapEx. Strong cash flow from software subscriptions. ### 2. **Security National Financial Corporation (SNFCA)** - **FCF**: Modest. Cash flow can fluctuate based on mortgage and insurance markets. ### 3. **Microsoft (MSFT)** - **FCF**: Extremely strong, fueled by cloud services (Azure) and software sales. A significant cash generator. ### 4. **GoDaddy (GDDY)** - **FCF**: Positive, benefiting from strong subscription revenue and low CapEx. Steady, though not as large as other tech giants. ### 5. **Carlyle Group (CG)** - **FCF**: Strong cash flow from asset management fees, but dependent on investment cycles. Cash generation can fluctuate based on fund performance. ### 6. **Meta (META)** - **FCF**: Historically very strong due to ad revenues, but recent heavy investment in the metaverse has reduced FCF. ### 7. **SoFi Technologies (SOFI)** - **FCF**: Negative or modest, as SOFI is still in a growth phase and reinvesting heavily into scaling operations. ### 8. **Alphabet (GOOGL)** - **FCF**: Extremely strong, generated from advertising and cloud services. Google has a very high FCF due to its dominance in digital ads. ### 9. **Oracle (ORCL)** - **FCF**: Positive, driven by its software and cloud segments. CapEx is relatively low, keeping FCF high. ### 10. **Amazon (AMZN)** - **FCF**: Historically mixed; AWS generates high cash flow, but the e-commerce business has heavy capital requirements, especially in logistics. ### 11. **Palantir (PLTR)** - **FCF**: Negative or marginally positive, as the company is still reinvesting heavily into growth and scaling its commercial operations. ### 12. **Broadcom (AVGO)** - **FCF**: Very strong, especially due to its semiconductor products and low CapEx needs in comparison to its revenue. ### 13. **Trimble (TRMB)** - **FCF**: Positive, driven by stable revenue and a relatively asset-light model in construction and geospatial services. ### 14. **SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)** - **FCF**: Not applicable, as this is an ETF holding short-term U.S. Treasury bills. It doesn’t generate traditional FCF like a company. ### 15. **Hewlett Packard Enterprise (HPE)** - **FCF**: Positive, due to stable IT services revenue, though not as large as its tech peers. ### 16. **Anywhere Real Estate Inc. (HOUS)** - **FCF**: Modest and dependent on housing market cycles. Real estate services have lower cash generation compared to tech companies. ### 17. **Digital Realty Trust (DLR)** - **FCF**: Relatively low as it reinvests heavily in data center construction, which is capital-intensive. ### 18. **First Citizens BancShares (FCNCA)** - **FCF**: Strong, as it benefits from steady banking revenue and relatively low CapEx. ### 19. **Berkshire Hathaway (BRK-B)** - **FCF**: Extremely strong due to the cash flow from its operating businesses, insurance float, and investment portfolio. ### 20. **NVIDIA (NVDA)** - **FCF**: Extremely strong, driven by high demand for its GPUs and data center products. It has a robust FCF due to high margins and low CapEx needs compared to revenue. --- ### **General FCF Insights for Your Portfolio**: - **Tech Leaders (MSFT, GOOGL, NVDA, AVGO)**: These companies are cash flow machines, with substantial FCF that supports future growth and shareholder returns. - **Growth Companies (SOFI, PLTR)**: These firms are reinvesting their cash flow into expansion, so FCF is currently lower, but potential for growth is high. - **Stable Dividend Payers (FCNCA, BRK-B)**: These companies have strong FCF, making them reliable for stability and income. - **Real Estate and Capital-Intensive Stocks (DLR, HOUS)**: These companies have lower FCF due to high capital expenditures, but their assets provide long-term growth potential. In summary, your portfolio is well-diversified, balancing high FCF tech giants with growth-phase companies and stable dividend payers. Maintaining a close watch on the FCF for growth companies like SOFI and PLTR will be important as they evolve.