I think the main reasons for why a business can have a high return on invested capital (ROIC) [1] [2] are: The business has had good luck; The business has been more operationally efficient than its competitors[3]; The business has a sustainable competitive advantage; The business has a temporary competitive advantage; The business’s earnings are [...]
Archive for the ‘ROIC and Competitive Advantage’ Category
Categories
- Asset Allocation
- Competitive Advantage – 1
- Competitive Advantage – 2
- Competitive Advantage – 3
- Controlling emotions
- Customer Captivity
- Earnings Growth and Profitability
- Economies of Scale
- Falsifying scenario’s
- Group Decision Making
- Ignoring market moves
- My Circle of Competence
- My Discount Rate
- My Quantitative Valuation Model – 1
- My Quantitative Valuation Model – 2
- Normalising Earnings
- ROIC and Competitive Advantage
- ROIC versus ROE
- Talking to Management
- Technology and Competition
- The Basics – Part 1
- The Basics – Part 2
- The Basics – Part 3
- Valuing using scenarios
- When to Sell
- Will the business survive?
Archives
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