ROIC: Benefits, Drawbacks, Mistakes And Tips

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Rupert Hargreaves
Published on
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A summary of Michael Mauboussin and Dan Callahan’s paper, Calculating Return on Invested Capital: How to Determine ROIC and Address Common Issues.  More from ValueWalk on ROIC: A New Way to Listen to the Music: ROIC ROIC And Reversion To The Mean Investing: ROIC for dummies Importance of ROIC Part 5: Four Decades of Wells Fargo History The Importance Of ROIC: Compounders and Cheap Stocks   ROIC: the $1 test A core test of success for a business is what Warren Buffett calls the $1 test, a simple test, which aims to show if  one dollar invested in the company generates…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk