A Quality Company That Merits A Premium, At A Discount - Neurones SA
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Now and then I like to spend some time searching for "quality" companies. Simplistically, I consider a quality company to be one that is likely to earn excess returns on its capital for a long period of time. So long as these excess returns on capital can be maintained and earnings can be retained and reinvested at these rates, attractive shareholder returns are nearly a foregone conclusion. A company that can invest existing capital and the retained portion of future earnings at attractive rates will see its intrinsic value rise, and the share price will follow in the long run.
A Quality Company That Merits A Premium, At A Discount - Neurones SA
A Quality Company That Merits A Premium, At A…
A Quality Company That Merits A Premium, At A Discount - Neurones SA
Now and then I like to spend some time searching for "quality" companies. Simplistically, I consider a quality company to be one that is likely to earn excess returns on its capital for a long period of time. So long as these excess returns on capital can be maintained and earnings can be retained and reinvested at these rates, attractive shareholder returns are nearly a foregone conclusion. A company that can invest existing capital and the retained portion of future earnings at attractive rates will see its intrinsic value rise, and the share price will follow in the long run.