Analyzing the Quality Metrics of Evolution Gaming

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

This chapter examines the impressive quality metrics of Evolution Gaming, including capital allocation, return on invested capital, return on equity, gross margin, and competitive advantage. It also highlights the company's ability to pay dividends and potentially engage in share buybacks due to its low capital requirements for growth. The chapter ends by mentioning where the audience can connect with the speaker.

Kyle Grieve chats with Compounding Quality about the benefits of quality investing, the tenets of a quality business, why returns on invested capital are the most important metric for measuring quality, the aspects of a quality management team, the attributes of a successful investor, the simple way to measure the returns of an investment, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

07:28 - Why investing in quality is so attractive to investors.

12:40 - The data behind the success of founder-led businesses.

12:40 - Key investing lessons from Warren Buffet, Terry Smith, and Chuck Akre.

33:12 - Why do businesses with high and sustainable returns on invested capital make such a great investment?

28:33 - A simple breakdown of the different types of moats a business has.

47:43 - Why thinking long-term, patience, discipline, and continuous learning are integral for investment success.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Read Compounding Quality’s Substack here.
Buy yourself a copy of Investing For Growth By Terry Smith here.
Buy yourself a copy of Quality Investing by Lawrence Cunningham, Torkell T. Eide, and Patrick Hargreaves here.
Buy yourself a copy of Quality Shareholders by Lawrence Cunningham here.
Buy yourself a copy of The Founder's Mentality: How to Overcome the Predictable Crises of Growth by Chris Zook and James Allen here.
Buy yourself a copy of The Checklist Manifesto by Atul Gawande here.
Buy yourself a copy of Stock’s For The Long Run By Jeremy Siegel here.
Check out the books mentioned in the podcast here.

NEW TO THE SHOW?

Check out our Millennial Investing Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.