An essay about this investment blog in 1000 words

He observes that while equities historically outperform bonds over multi-decade periods, the vast majority of individual public stocks actually underperform simple Treasury bills. This reality does not mean an investor must undergo the exhausting task of discovering the next speculative multi-bagger. Instead, Smith argues that long-term wealth creation is driven by identifying and maintaining ownership in a reasonably sized cohort of fundamentally exceptional businesses.

The awkward link between Buffett’s moats and ROIC – Part ll

A company that spends a lot of R&D dollars on intangibles of lasting value will have assets not shown on the balance sheet and ROIC will be artificially inflated. Such a company that is also acquisitive will show depressed ROIC because NOPAT will be reduces because the investments in intangibles of lasting value will be expensed and depress earnings and hence NOPAT.