Investment Strategies: Understanding ROIC and WACC

Welcome to the Investing for Beginners podcast! In this episode, we are joined by Pieter from Compounding Quality for the third time. Pieter shares his insights on transitioning from value investing to quality investing, the importance of return on invested capital, and how to identify high-quality stocks. He also discusses his personal investment strategies, including portfolio construction, the significance of high reinvestment rates, and the value of continuous learning.

00:00 Welcome and Introduction

00:40 The Journey to Quality Investing

03:06 Influential Mentors and Learning Resources

06:50 Daily Habits and Reading Goals

12:03 Investment Strategies and Checklists

18:09 Analyzing Return on Invested Capital

27:02 Conservative Growth Projections

28:01 Evaluating Management Guidance

29:09 Analyst Estimates and Margin of Safety

31:22 Intrinsic Value and Long-Term Returns

37:06 Portfolio Construction Strategies

41:52 Research and Deep Dives

48:33 The Future of Investing Legends

51:03 Conclusion and Final Thoughts

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

More from Pieter:

Substack: Compounding Quality

X: Compounding Quality

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