Importance of ROIC Part 4: The Math of Compounding
basehitinvesting.substack.com
I thought I’d circle back to discuss the topic of compounders and return on capital. I wrote a few posts about earlier this year, and there have been numerous comments and questions. In this post, I want to discuss the actual math behind the compounders, to try and show why return on capital is so important to long term business owners (which is what we are as stockholders). To recap what I mentioned earlier, I usually put investments in two broad categories, but ideally, I’m looking for:
Importance of ROIC Part 4: The Math of Compounding
Importance of ROIC Part 4: The Math of…
Importance of ROIC Part 4: The Math of Compounding
I thought I’d circle back to discuss the topic of compounders and return on capital. I wrote a few posts about earlier this year, and there have been numerous comments and questions. In this post, I want to discuss the actual math behind the compounders, to try and show why return on capital is so important to long term business owners (which is what we are as stockholders). To recap what I mentioned earlier, I usually put investments in two broad categories, but ideally, I’m looking for: