I believe that ROIC is higher since they are acquiring businesses and therefore goodwill is inflated and earnings lower. If one takes the money used to acquire businesses from 2018 to 2022 and divide the increase in earnings over the same period by it, you'd get 25%. Or am I forgoing the investments in organic growth?
Furthermore, my inability to assess the strong and durability of the businesses under its helm withholds me from investing in it. Idk if you have any further inside into the moats of the businesses?
Very informative article! I enjoyed reading it, thank you very much.
Thanks for the good write-up.
I believe that ROIC is higher since they are acquiring businesses and therefore goodwill is inflated and earnings lower. If one takes the money used to acquire businesses from 2018 to 2022 and divide the increase in earnings over the same period by it, you'd get 25%. Or am I forgoing the investments in organic growth?
Furthermore, my inability to assess the strong and durability of the businesses under its helm withholds me from investing in it. Idk if you have any further inside into the moats of the businesses?
Great write-up, thanks for sharing. Do you happen to know the CEOs ownership position in the equity?