The Ozzie Growth Sell Off
ANOTHER LOOK AT THE GROWTH SELL-OFF Background My basic investing thesis revolves around backing companies that can add assets and maintain a high ROE. Adding assets while maintaining a high return propels eps higher and with it the SP. The maths is simple, the execution is not, management and investing. I do like frameworks, especially those that win, and if you can pick a company that adds assets and holds returns, while buying at a reasonable price, you will do very well. The hard part is picking those companies that can maintain returns. Investing is not easy. I’ve found buying them at a reasonable price is the easier part (takes patience). However, in my case, I find this framework immeasurably easier than finding a company that is yet to prove itself as a quality company; I find that even harder. Brief recap of proof point I've done this to death before, so it will be brief. To prove the thesis, I picked 12 high ROE companies and 12 low ROE companies. The thinking h...