Halls of Shrewd'm / US Policy
No. of Recommendations: 2
On the back of this interesting discussion, please list your favourites.
I'll start with;
Alphabet ROE 35% ROIC 32%
Meta ROE 40% ROIC 32%
NKE ROE 32% ROIC 18%
Tencent ROE 21% ROIC 16%
Costco ROE 32% ROIC 24%
No. of Recommendations: 13
Walmart is not a bad example.
Using slightly smoothed figures to avoid any single-year anomalies, the increase in annual net profit is about 21.5% of the increase in total shareholders' equity in the last five years.
As mentioned elsewhere, estimating ROIIC is tricky. Don't trust figures you find in databases or web sites, estimate it yourself.
For example, the tech giants plan on spending about half a trillion on LLM-related equipment in the next few years, and you'll have to come up with an estimate of what the return on that capital will be. The figures are so big that the past is perhaps not a good guide to their future ROIIC.
Jim
No. of Recommendations: 2
I am too lazy to look up the numbers, but companies like Visa, MC and Moody’s come to mind. All have ROEs above 50%.
Amex has ROE around 30%.
No. of Recommendations: 2
LVMH and Hermes
I think Munger said in an interview he doesn’t care much about style company like Nike but likes hermes
No. of Recommendations: 3
Also msci, spgi, fds
lvmh and msci are run by long term owner/founder AND who have been buying shares
