Talk Your Book: Investing in Quality Growth
Animal Spirits Podcast
00:00
Are You Looking for Sustainable Returns on Capital?
For us, first and foremost, the return on equity screen that we're looking for is an absolute. So it's not relative and it's not normalized on a per sector basis. For those sectors that typically don't have companies that qualify, then that's sort of a reflection of what we would say is relatively lower returns on capital. We certainly want to identify value in those pockets of value where we can sort of really invest and apply more money to those opportunities. It actually matters quite a fair bit, especially if you're talking about discounted cash flows.
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