One of Warren Buffett’s biggest contributions to the investing world is the concept of durable competitive advantages or economic moats.
ROIIC
= Incremental Profit / Incremental Invested Capital
Have you thought of using their Growth in the numerator and denominator?
ROIC Growth Factor & Intrinsic Value Growth Factor
= Function of Profit's Growth / Function of Invested Capital's Growth
I have not. I’ll have to look further into it.
The scale is important for incremental amount.
If incremental profit amount & incremental invested capital amount are both relatively very small, ROIIC is meaningless.
ROIIC
= Incremental Profit / Incremental Invested Capital
Have you thought of using their Growth in the numerator and denominator?
ROIC Growth Factor & Intrinsic Value Growth Factor
= Function of Profit's Growth / Function of Invested Capital's Growth
I have not. I’ll have to look further into it.
The scale is important for incremental amount.
If incremental profit amount & incremental invested capital amount are both relatively very small, ROIIC is meaningless.