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More Buffett ROIC Wisdom: The Good, The Great, & The Gruesome
In response to a recent discussion on some Warren Buffett investment advice about ROIC involving a See’s Candy example, a reader suggested I look at the Berkshire 2007 shareholder letter. It makes the same points but also offers some different slants on ROIC that are worth reviewing. I remember reading the 2007 letter when it…
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A Great Columbia Business School Podcast Episode (July 2024) – Some ROIC Mentions
Here’s a recent interview with Phil Ruvinsky, head of Growth Investing at Blackrock, from a recent Columbia Business School podcast episode hosted by Michael Mouboussin. It touches on some of the topics covered in the last post on ROIC including: This podcast has some exceptional guests so it’s worth checking out other episodes.
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Warren Buffett Advice for Investing
I really like this two-minute video from the 2021 Berkshire Annual Meeting. It’s Buffett’s response to a question from the audience about tech companies and return on invested capital. He covers a lot of conceptual ground in only a few minutes, giving a whirlwind tour of how to think about ROIC. This bit of Warren…
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Breaking Down ROIC For Hubspot Stock
It would shock you how many people own, short, or just speak with authority about Hubspot stock without really understanding how the business makes money. Or maybe it wouldn’t, but it’s shocking to me. That’s why in my last post I tried to explain the business in a clear and concise way, in the context…
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Avantor (AVTR): Breaking Down ROIC (1/2)
Here we look at an Avantor (AVTR) ROIC breakdown from Substack. Exploring the topic, we consider effective tax rates, competitor ROIC, & more!
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Semrush (SEMR): Recasting Expenses As Intangible Assets For ROIC (2/3)
Learn about recasting intangible assets for ROIC in our second piece on SEMRush. We use a GAAP income statement to solve for ROIC and more!
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ROIC Comps Example: Orthopedic Supplies
Analyzing capital productivity, economic profits, and invested capital numbers is crucial to understanding ROIC in companies like Smith & Nephew.
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Recasting Expenses For ROIC: PharmaCo Example (2/2)
Find further observations and considerations about recasting expenses for ROIC in part two of our pharmaceutical company example.
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Recasting Expenses For ROIC: PharmaCo Example (1/2)
Learn about recasting expenses for ROIC in part one of our PharmaCo example from Tim Koller’s Mckinsey Valuation 7th Edition.
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Recasting Expenses As Intangible Assets For ROIC
Explore the topic of recasting expenses as intangible assets for the purposes of ROIC, including how the GAAP approach to expenses falls short.
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