Core Viewpoint - The article emphasizes the importance of free cash flow as a more reliable indicator of a company's financial health compared to traditional profit metrics, highlighting the need for investors to focus on cash generation capabilities rather than just profit figures [2][4][14]. Summary by Sections Investment Philosophy - Warren Buffett's investment philosophy stresses the analysis of financial health and competitive advantages, particularly focusing on the efficiency of free cash flow usage, sustainable competitive advantages, gross margins, liquidity ratios, capital expenditure needs, debt levels, and return on equity (ROE) [2][4]. Free Cash Flow ETF - The Fangzheng Fubon CSI All-Index Free Cash Flow ETF is designed to track the CSI Free Cash Flow Index, filling a gap in investment tools focused on cash flow factors. The ETF selects companies based on criteria such as positive free cash flow, consistent cash flow generation over five years, and high profitability quality [4][5][15]. Historical Performance - The free cash flow index has outperformed broad market indices, achieving an annualized return of 14.1% since December 31, 2013, which is 9.9% higher than the Shanghai Composite Index and 9.5% higher than the CSI 300 Index. The total return index, including reinvested dividends, boasts an annualized return of 18.8% [6][9][11]. Comparison with Other Indices - The free cash flow index has a total return of 326.9% over the specified period, with a maximum drawdown of -45.0% and a Sharpe ratio of 0.68, indicating a better risk-adjusted return compared to other indices like the Shanghai Composite and CSI 300 [7][11]. Dividend Yield - The free cash flow index offers a dividend yield of 4.8%, which is attractive in the current low-interest-rate environment, making it appealing for income-focused investors [12][15]. Market Context - The article discusses the changing global economic landscape and the increasing importance of free cash flow as a measure of a company's resilience and ability to navigate uncertainties, especially in the context of China's economic transition [14][15]. Regulatory Environment - Recent regulatory changes emphasize the quality of corporate earnings and sustainable dividends, aligning with the principles of the free cash flow strategy, which focuses on long-term value creation [15][16].