Salesforce is a good investment due to strong free cash flow yields and significant share buybacks by management.

One of the reasons we bought Salesforce shares at $163 was that If you go to the stocks tab for course members, and then to Salesforce ( found in the Meet Kevin app), the stock's momentum was enormous.

I still have it for $458. I think it could reach $500, but let me check. If you review my notes on this company's cash flow , you will find they date back to July. I need to find her.

The free cash flow yield was around 13%, which is a really great number . I even mentioned that they are not currently doing share buybacks, but their balance sheet and cash flow are so strong that I decided to invest in them.

In this case, one of our session members mentioned that they would likely see a wave of share buybacks. But we don't know exactly when. Looking at some of my other remarks here, we talked about Salesforce, Salesforce, about them borrowing $27 billion to buy $25 billion worth of stock, which is crazy.

I wrote down what Marc Benioff said, and this is a paraphrase of his words: " I'm going to borrow to buy my shares when their price drops. This could be the boldest move ever, or he's completely insane."

I wrote: "I tend to think he is very adventurous." To be honest, his average purchase price is currently $191. We entered the market at around $165. We said: This is unbelievable .

As you know, the stock is currently trading at approximately $265. Therefore, the man has benefited greatly from the drop in the share price, as he bought his shares himself, and the cash flow is enormous.

Well, I made a note about not calculating the annual cash flow. Actually, this is wrong. Salesforce 's annual cash flow is not calculated because its cash flows are irregular. But its cash flow is expected to be around $15 billion.

So, if we take $15 billion as cash flow for the fiscal year, and look at Salesforce, which is currently trading at $264, its market capitalization is $217 billion. The current free cash flow yield is approximately 6.9%.

This is an excellent number. But if we go back to where it was when it was trading at $165 divided by 265, we find that it is trading at a price 38% lower. Therefore, $217 billion, or 217 x 62, equals approximately $134 billion .

134 Well, based on these calculations, their free cash flow rate has reached about 11%, which is the same rate they had previously, and it is still at 6.9%.