Another excellent company I always thought was over valuated is Ultrapar. But looking at cash flow you can see that in 2010 it earned "only" 765 mi, but have charged 530 in depreciation and another 135 mi in deferred taxes. So it created about 1,4 bi in cash! That is 26% over equity.
Ultrapar also invests a lot, but reading the report I believe (although I don't know how much) most of that investments are directed to growth.
That's another example of an excellent company that I had misunderstood, until I looked to its cash flow.
Now I think that I full understand this maximum: CASH IS KING!
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