"If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with one hell of a result." — Charlie Munger
Here are 10 stocks with a return on capital > 20%:
1. Alphabet (GOOGL) ROIC: 32.1%
Alphabet is the parent company of Google, which makes money mainly through ads.
It also owns YouTube, Android, and invests in AI and other tech projects.
2. Eli Lilly (LLY) ROIC: 27.1%
Eli Lilly is a drug company known for making treatments for diabetes, cancer, and now obesity.
It’s growing fast thanks to its new blockbuster drugs.
10 funny quotes on investing with meaningful lessons:
1. Price vs value:
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher
2. Dangerous Months
“October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September...” – Mark Twain
3. Balance Sheet = a bikini
"You know, a balance-sheet is like a bikini, it shows more but it hides what is vital. I learned to read a balance sheet and then I got fascinated by stocks." – Rakesh Jhunjhunwala