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Strategies & Market Trends : Value Investing
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To: IndependentValue who wrote (55674)7/13/2015 10:04:57 AM
From: Paul Senior  Read Replies (1) of 78667
 
what are peoples views on investing in cheap (value) stocks that may have many of the attributes that we all seek (good underlying business, prospects, management, track-record, cash-flow etc.) but which have low or modest returns on capital (e.g. sub-15% ROIC or even ROE)?


I buy them if they are cheap enough in my view.

Do you have any specific stocks in mind to mention?

... but then when I get to ROIC I see 11% or maybe 13% and can't help but feel suddenly look-warm at best on it as an investment opportunity

I find that to be only a determinant as to how big a commitment I will make to the stock. If the stock meets my criteria for purchase, I find for me it's usually better to make some commitment regardless.
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