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Compounders are largely more expensive these days, but when a stock trades at a 20% FCF yield and is buying back shares, it has the same per share compounding potential as a 20% ROIC company that reinvests all earnings.
Some thoughts:
John Huber
5,752 posts
John Huber
@JohnHuber72
Founder, Portfolio Manager: Saber Capital Management
Notes: basehitinvesting.substack.com
Disclaimer: sabercapitalmgt.com/disclaimer
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- In the Panic of 1907, our economy plunged. Steel output -60%, iron -55%, imports -26%, unemployment soared, doors closed, rent wasn't paid. Economic output cratered for 6 months. GDP down 10% in 1908 but had quarters down 25%. Yet, stocks rose 44% in 1908. jstor.org/stable/pdf/188…
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