Ep 346. Q&A: Investing Mistakes, Holding Compounders, ROIC, FCF + Growth
Focused Compounding
00:00
Is Your Turn Equity Higher Than Your Growth?
I generally think that the company's future will be constrained by growth more so than by return on equity. There are a lot of companies where we could increase returns on equity by taking equity out of the business. It's easiest to do this with like banks. For really good businesses, their issue is there's no way to grow as fast as your return on Equity.
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