Kit Winder, CFA(@WinderKit):They say that share prices follow cash flows... But it's not always a perfect relationship. Take Nestlé. The price (black line) did follow FCF/share growth (bars) very closely for twenty years. And then in 2020-2025... It got it all wrong. FCF fell for two years before the share price noticed. And by the time cash flows began recovering... the share price fell for another two years. In fact, the share price peaked just as the cash flows began to recover. It did a Wile E Coyote - twice. Now, FCF is rising strongly again. Will the old relationship resume? $NESN

Kit Winder, CFA

@WinderKit

Senior Equity Analyst at ByteTree | CFA Charterholder | Focused on quality investing | Views my own, not investment advice.

加入 March 2019

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Kit Winder, CFA@WinderKit

2026.08.14 10:57

They say that share prices follow cash flows... But it's not always a perfect relationship. Take Nestlé. The price (black line) did follow FCF/share growth (bars) very closely for twenty years. And then in 2020-2025... It got it all wrong. FCF fell for two years before the share price noticed. And by the time cash flows began recovering... the share price fell for another two years. In fact, the share price peaked just as the cash flows began to recover. It did a Wile E Coyote - twice. Now, FCF is rising strongly again. Will the old relationship resume? $NESN