Explaining the Growth Capex Formula with an Easy Example

Updated: 04/06/23 When a company invests in a long-term asset for future cash flows, these are called capital expenditures, or capex. Capex can be divided into two buckets: growth capex and maintenance capex, as suggested by Warren Buffett. Capital Expenditures = Growth Capex + Maintenance Capex These definitions can help distinguish between companies with high […]