6min chapter

Animal Spirits Podcast cover image

Talk Your Book: Investing in Quality Growth

Animal Spirits Podcast

CHAPTER

How Stable Is Return on Equity?

Jensen: ROA is a very good indicator of shareholder value, but we also don't think it's the only one. We typically then want to look for companies that are growing. For example, Walmart is one that qualifies from an RE perspective historically,. But we haven't really seen the consistent high levels of growth that we're seeking for that type of business.

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