On Yoyodyne.....

[Charles Albert]

*The most interesting story in the history of capital allocation was the
rapid growth and then steady shrinking of Teledyne, a conglomerate formed
by Henry Singleton in 1960. Teledyne spent the 60’s growing through
acquisitions—130 companies in total, bought for twelve times earnings or
less—funded in large part by the issuance of new shares of Teledyne stock
and debt. One of its last acquisitions in this period was Ryan Aeronautical
in 1969—to which we will return. During this acquisitive phase, between
1961 and 1971, sales and earnings grew 244x and 556x alongside large growth
in shares outstanding and debt[i]
<http://investorfieldguide.com/shrinkage-vs-growth/#_edn1>. Earnings were
sometimes volatile, but Singleton didn’t care: he focused on cash flow.*

http://awealthofcommonsense.com/2016/05/death-by-a-thousand-cuts/

love,
cfa
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