
Ep 121. Investing in Stocks: ROC, ROE, ROIC, ROIIC
Focused Compounding
00:00
The Importance of Segment Information in Investing
It's good to get segment information. Like if the business has multiple different lines and really take like the capital that's invested in those businesses and then the returns that they generate off of that capital as well. You can kind of find that out from doing those calculations on the actual segments. Yeah, I'm sure that if they only had that one park, they'd have like a 30% return equity or higher after taxes. But then you could also start to take a little bit further, okay, what if management shuts down this park? What would the company look like? Absolutely. It kind of leads you down other tunnels.
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