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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (65009)	10/1/2020 6:47:54 AM
From: petal	1 Recommendation Recommended By Nya_Quy Read Replies (1) \| Respond to of 78774

Well, one could make it even easier... With Greenblatt's formula: 1) ROC (>10 %) 1) EBIT/EV ;-) I'm starting to lean on that more and more. It makes so much intuitive sense, and is so easy. As you say, profit is the main thing. And if you have a great business idea and have a huge ROC – how can it fail? Buffett often emphasized ROIC too. I just finished Lowenstein's Buffett book. Many great one-liners that will stick with me. One, when being RJR Nabisco pitched their business, he said something along the lines of "you don't need to tell me the numbers. I know the product is great. You make a it for a penny, and sell it for a dollar – and you sell it to addicts". That's why I like Swedish Match. It is really a Buffett stock. Richly valued, but with a huge MOAT and great ROC (~80-90 % last 5 years (!) though it's difficult to calculate for them due to a weird negative equity situation). They make snus, a specifically Swedish product which now is starting to spread, especially in the form of "white tobacco" (their product is ZYN, which IMO is vastly superior to competitors) which from what I take it has reached the US in a big way too? And, they make matches too – the ROC on those little things back in the day, man oh man....