Owner Earnings in the Age of AI

The Investment Perspective – July 2026

Peter Flannery Financial Adviser CFP

“Neither the investing method nor the fundamentals of the business are right or wrong because the mood of the market is favourable or unfavourable toward the “stock”. That is because when you really think about it, “stocks” (shares) are all about the financials and the trading price, the share price… the cash up value. What matters more is the economics of the business” 

Peter Flannery

Key Points:

  • Owner earnings measure the cash actually left for shareholders, not the accounting profit
  • The key split: maintenance capital expenditure to stay competitive, versus growth capital expenditure that builds future earnings
  • What to look for: recurring cash flows, pricing power, high returns on invested capital, and consistent growth in owner earnings per share
  • Over the next three to five years, this is the measure that separates the AI winners from the AI spenders
Click Here To Read This Month's Investment Perspective - June 2026
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