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Ep 121. Investing in Stocks: ROC, ROE, ROIC, ROIIC

Focused Compounding

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How to Forecast Your Company's Returns

Do you do any sort of forecasting when it comes to return capital? Is it more so you learn about what they're doing and you kind of form your opinion for there. No forecasting like... Or is it really just to decide, okay, it's a great business. They generate high returns and then kind of move on from there. Yeah. So no forecasting in terms of what I expect returns to be in the future versus now. It's not like I say, okay, I think they're going to improve their turns by 1.5 times versus the 1.3 that they have now. But over time that means that it's going to raise the return equity closer to the incremental

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