![]() This article covers one of my favorites: Microsoft Corporation ( NASDAQ: MSFT). ![]() Today I'm taking you along in my journey to find businesses with wide moats. Therefore, moats are essential for a business to generate great long-term returns. The ROIC gives a sense how well a company is able to generate cash flows from reinvesting capital into the business.Īfter all, these aspects are protected by moats - abilities that give a business competitive advantages. At the same time, a company should be able to reinvest capital back into the business, preferably with a high ROIC to fuel future growth. Strong and predictable cash flows enable companies to return capital to shareholders in the form of buybacks and dividends. Achieve a high ROIC (Return on invested capital).Have the ability to reinvest cash flows into the business. ![]() Generate strong and predictable cash flows.For me, the 'holy grail' is to find businesses that: The question is what makes a great business. Holding great businesses helps you to sleep well at night. For adding businesses, I am looking for continuous growth at a reasonable price. I truly believe that too much trading increases the probability of making potential mistakes, so I just buy & hold and let the compounding effect do its work. My strategy is to buy high-quality dividend stocks with the intention to hold them forever. There are many strategies to build wealth. ![]() Active contributors also get free access to SA Premium. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Editor's note: Seeking Alpha is proud to welcome Jarco Vianen as a new contributor. ![]()
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