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EP 314. How Much Is Too Much To Pay for a Great Business

Focused Compounding

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Is Your Return on Invested Capital Going Down?

The marginal return on invested capital is almost impossible to measure, but people should always keep that in mind when you look like southwest air lines or awalmard. They can still create a lot of value if they startid very high, right? If you start with a forty % return on vessof capital, and over 30 years, you go down to a 20%. But that's tha thing you have to look at. And so if you one flat or rising return on investid capital, but if it's a lower return, investigatitale doesn't matter a great deal to me.

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