Dear Mom,

I remember watching you pay bills every month, carefully budgeting out the right amount of money to the different companies we owed money to, controlling the cash flow going through your family. You paid each bill on time and never let us go into debt to fund an extravagant vacation we couldn't afford, no matter how much we begged and pleaded. From watching you do this as I was growing up, I learned how to handle money. I've been careful not to go too far into debt (not counting the mortgage) and lived within my means (except when I really wanted that new computer). For the most part, your quiet lessons stuck, helping to mold my money philosophy.

What you might not have realized is that I find myself applying those same lessons when looking for companies to invest in. One company I like, based on those long-ago lessons, is the casual-dining restaurant chain Cheesecake Factory (NASDAQ:CAKE). There's a location near you, and if I lived nearby, I would take you there to try some of the items from the excellent menu. Don't worry about the portion size, though. Lunch for the next two days is assured. You must save room for dessert, so you can sample one of the 34 cheesecakes. There's even one made with Splenda, if the sugar concerns you. I don't think you'll be disappointed in the menu.

From a money-handling side, you shouldn't be disappointed, either. In an effort to improve profit margins, Cheesecake Factory is implementing a "Kitchen Management System" to make the restaurants operate more smoothly. That will enhance the guests' experience and the company's own efficiency. It should also improve the bottom line.

In addition, the company has scrupulously avoided using debt to fund its expansion across the country. Instead, it uses cash generated from the business to pay for everything. No debt at all. Sure, it could have rapidly expanded the number of its wildly popular restaurants by going into massive debt, but it didn't. Instead, it's been slowly growing over the past several years, still approaching its target of 200 locations nationwide. This approach did run the risk that the chain's popularity would wane, but that hasn't happened. Maybe its regular menu upgrades have something to do with that -- not to mention those delicious cheesecakes.

I used to own shares in this company, but I sold when I thought the shares had become overvalued. Unfortunately for me, the price has just kept on going up. So maybe I missed your lesson on hanging onto those companies whose money-management philosophy closely matches your own. Lesson learned, Mom!

Next time I see you, I'll take you to this restaurant so you can judge for yourself. Nonetheless, I think you would enjoy being both an owner and a customer.

Your son,
Jim

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Fool contributor Jim Mueller likes visiting his local Cheesecake Factory about once a month, but he does not own any shares at this time. The Fool includes children writing for their parents.