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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (75885)	7/26/2024 1:09:31 PM
From: E_K_S	Read Replies (2) of 78717

This topic was a Motely Fool Pod cast but they had it all wrong with their RONTA analysis. They were looking at NVDA & AMD both companies with high RONTA's but growing revenues were not due to their tangible asset holdings. Both outsource their manufacturing . . . So you have to look at this in context of the facility and more importantly how can those tangible assets can be more efficient and help grow revenues (perhaps using AI robots and/or smart logistic in the warehouse). I am still researching this and need to see which companies Buffet owns where this metric works (over years). My first thought was LEG where they are reducing their manufacturing facilities from 50 down to 30 but using robots and smart warehouse logistics to increase efficiency. It will be interesting to see what comes up on a screen but it is still important to look at this metric in terms of how these tangible assets can help increase revenues over time (like 10 years). --------------------------------------------------------------------- Here is the link to the Podcast - The Seat Is taken tinyurl.com Then (12:05) Asit Sharma joins Ricky to discuss one of Warren Buffett’s favorite metrics.

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