Tough times don’t last, High ROC Companies do

Does an investing strategy that invests in high Return on Capital companies deliver better returns than the market? This post backtests the strategy by simulating investment in deciles of companies with varying ROCs. The results support the hypothesis that a strategy that invests in high ROC companies does better.

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Can buying cheap NIFTY stocks beat the index?

Legendary value investors, past and present, and the best value investing blogs offer this as the one consistent message. Focus on buying stocks trading at relatively lower valuations to the market and the returns will take care of themselves. Ironically, the most-quoted “value investor” in the world, Warren Buffett deviated from this simplistic strategy a long time ago when he started buying “wonderful businesses” (brand, pricing power, future ability to generate cash with minimal capital) at fair prices over fair businesses at “wonderful prices” (current low price to book / other earnings multiples”. The term “wonderful business” has since then

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