Ideally,
a business earns a high return on a capital and can reinvest over the long - term at as good or better rate of return.
Not exact matches
During that time, gas prices in Alberta where actually
higher than prevailing LNG prices, and so developers thought they could
earn a
return re-gasifying LNG on the B.C. coast to ship inland to supply our homes and
businesses.
Given how risky most
business startups are, credit card companies and their issuing banks must charge
high rates, often exceeding 20 percent, to
earn a
return.
So we hired a computer analyst that could help us you know mine through data and we came up with some very simple metrics for good, you know, what's a good
business, and if you read through Buffett's letters, it's very clear, he is looking for
businesses that
earn high returns on tangible capital.
And if you can buy some
business that
earns high returns on equity and has even got mild growth prospects, you know, at much lower multiple earnings, you are going to do better than buying ten - year bonds at 2.30 or 30 - year bonds at three, or something of the sort.»
Indeed, it's often a mistake to do so: Truly great
businesses,
earning huge
returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at
high rates of
return.
Buying stocks that appear cheap relative to trailing measures of cash flow or other measures (even if they're still «good»
businesses that
earn high returns on capital), usually means you're buying companies that are out of favor.
So companies that can
earn higher rates of
returns on both their base
business and new
business are uncommon.
Trading near tangible book value, Goldman offers an attractive price for a
business that
earns a significant amount of revenue from
high return asset management and underwriting and advisory services.
A «
High Quality» business in their view is defined as a business which can earn high return on capital for a long period of t
High Quality»
business in their view is defined as a
business which can
earn high return on capital for a long period of t
high return on capital for a long period of time.
Businesses use «leverage» to borrow money cheaply so that they can
earn higher returns elsewhere.
The strongest
business models will
earn high and stable
returns.
Indeed, it's often a mistake to do so: Truly great
businesses,
earning huge
returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at
high rates of
return.
Credit unions often pay
higher interest rates on deposits than their for - profit rivals, a benefit of
returning surplus
earning to the
business.
All of the
businesses on the list generated a
high return on their equity and could reinvest their profits and
earn those
high returns year after year after year.
The ability to
earn a
high return on capital means that the earnings which are not paid out as dividends, but rather retained in the
business, are likely to be reinvested at a
high rate of
return to provide for good future earnings and equity growth with low capital requirement.
Buying stocks that appear cheap relative to trailing measures of cash flow or other measures (even if they're still «good»
businesses that
earn high returns on capital), usually means you're buying companies that are out of favor.
Frequently senior managers and executives
earning at a
higher compensation level are more vulnerable, as
businesses looking to cut overhead can reap a
higher cost - saving
return on a lesser number of executives than a broader right - sizing (down sizing) lower level staff.