MI245: A Year in Review w/ Rebecca Hotsko
The Intrinsic Value Podcast - The Investor’s Podcast Network
00:00
Why It's So Hard to Find Companies With Sustainable Competitive Advantages
The average company in the S&P 500 earns about 13.3% return on invested capital. If you find a business that's earning more than that, you know that you've got potentially you've got a special kind of business. You can see if that special business has a higher return than normal, then it's also worth more than normal. And so it should trade at a premium to the average P.E. in theS&P 500 - which might be around 19 times right now.
Transcript
Play full episode
