That's why Greenblatt's thesis of looking at companies
with high returns on invested capital is fatally flawed from the get - go, and you see it manifested in his real - world returns.
You show businesses
with high returns on invested capital and also the ones with a low ROIC.
Not exact matches
We've previously shown that companies
with consistently
high returns on invested capital (ROIC) are stocks that are able to withstand market downturns, especially bear markets like the market crash of 2008.
As Figure 1 shows, the 30 companies
with the most cash stashed overseas earn a much
higher return on invested capital (ROIC) than the rest of the S&P 500.
Companies that consistently earn
high returns on invested capital with high probabilities of continuing this into the future are worth far more than their carrying value.
Michigan About Blog BlueWater Angels (BWA) is a network of more than 50
high - net - worth individuals and select organizations interested in
investing capital in promising companies
with the expectation of receiving a substantial
return on their investment.
Brookings» Adam Looney notes, «Individuals in a
high - tax state and
with short - term
capital gains can avoid $ 7.50 in taxes for each $ 100 they
invest, even before considering any
return on their Zone investments.»
An unconstrained actively managed portfolio
investing in a broad range of companies predominantly from Australia
with the objective of specifically seeking out
higher quality companies characterised by strong
returns on capital with a sustainable competitive advantage.
The key to Primus's success, in my view, will be to manage this transition effectively and allocate
capital to
higher growth businesses
with a keen eye
on return on invested capital.
I love
investing, but the experience of connecting
with new friends, clients, and investors has been — as one wide moat /
high return on capital credit card company likes to say — priceless.
Fund seeks to
invest in quality companies
with a demonstrated history of sustainable earnings growth, strong cash flow and
high returns on capital determined by fundamental analysis of a company's financial trends, products and services, and other factors.
The firm was established in 1984
with the mission of
investing in good businesses that have
high returns on capital, above - average growth prospects, ethical business practices and sustainable competitive advantages.
It is also misleading to write - off
high multiple stocks as not being value opportunities — there are some businesses
with growth rates and
returns on incremental
invested capital that can more than justify an optically
high earnings multiple.
Fund
invests in companies
with a demonstrated history of consistent, sustainable earnings growth, strong cash flow and
high returns on capital determined by rigorous fundamental analysis of a company's financial trends, products and services, and other factors.
As seen below, KO has generally maintained a
return on invested capital in the teens or
higher for the past decade, which indicates a durable and consistent business
with low
capital intensity (licensing brand formulas to restaurants and bottlers).
I also try to
invest in companies
with 5 years avg ROCE of more than 25 % — assumption being management being prudent and
high quality will generate good
returns on capital available to them.
Stop sitting down and let your money do all the work — if you are unhappy
with the 0.60 % APR
on Capital One's Interest Plus savings account, you can always take it out and
invest the money
with a
higher rate of
return on investments.
Michigan About Blog BlueWater Angels (BWA) is a network of more than 50
high - net - worth individuals and select organizations interested in
investing capital in promising companies
with the expectation of receiving a substantial
return on their investment.