Returns on Capital and an Investment Idea

Posted on 8 CommentsPosted in Investment Ideas & Company Research, Investment Philosophy, Investor Letters

A couple years back, I wrote a series on the topic of returns on capital (ROIC) and how significant its impact is on the long-term value of a business. As a long-term shareholder of a business, your ultimate investment result will be determined by the quality of that business over time. One way to measure quality is to figure out the rate of return that the company achieves on its own internal investments (as well as what that company does […]