Buffett’s Three Categories of Returns on Capital

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“A truly great business must have an enduring “moat” that protects excellent returns on invested capital.” –Warren Buffett, 2007 Shareholder Letter A reader recently sent me the following clips from the 2007 Shareholder Letter that pertains to a topic that we’ve discussed quite a bit here: the concept of return on capital, why it’s important, and how to think about it. For those interested, you could review all the previous posts on the concept of ROIC here. Basically, I just […]