I bought 1 widget for $50 & sold it for $100. The customer tells me he would buy 99 more widgets for $100 each & I can buy them for $50. I spend my $50 profit on the first widget buying another $50 widget.

Some ppl think my business is worth $0 because it has no free cash flow.

I sell my second widget for $100, and now I buy 2 widgets for $50 each and sell them.

A twitter commenter comments "for this business to be worth more than $0, it would have to distribute at least 3 widgets worth of cash flow per year."

I sell my 2 widgets, and with my $200, buy 4 more widgets.

The same twitter commenter comments "now this business would have to distribute at least 4 widgets of cash flow per year!".

I sell my 4 widgets ($400) and buy 8 widgets.

The same twitter commenter comments "This business is clearly overvalued. They have to keep spending on widgets to make it work and there is no excess cash flow."

I sell my 8 widgets ($800), and buy 16 widgets.

The same twitter commenter comments. "This business would have to distribute at least $200 per year to even come close to making sense. But they can't because they keep buying widgets!"

I sell my 16 widgets ($1600), and just to piss off the guy who doesn't understand business or how GAAP accounting often is not representative of intrinsic value, I only buy 28 widgets ($1400), and I pay a $200 dividend.