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Röko: Building a Leading Serial Acquirer

In Practise Interviews

CHAPTER

The Importance of Return on Capital

I was just curious if you actually look at that, because some companies like judges, scientific or others, they say, we look at the opcode level. And it's like you said, over a long period of time, the hold code, the return of the capital will converge with the returns on the underlying assets. But we have some at LIFCO, we would never buy a company with less than 50% return on capital employee. It doesn't work. Also, so actually, we don't buy any paper manufacturing companies or asset heavy companies. Yeah.

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