From the Motley Fool. Presented without comment: The long game … pic.twitter.com/5mQQukVmpK — The Motley Fool (@themotleyfool) January 4, 2018
This is an excerpt from an interview I did with Steven Kiel of Arquitos Capital for ValueWalk back in September. Arquitos is modeled on the partnerships managed by Warren Buffett from 1956-1969. The fund uses a bottom-up, company-specific approach, identifying situations where significant mispricing exists. And this approach has, so far, yielded some highly impressive results. Arquitos Capital’s annualized return since launching on April 10, 2012 to the end of June was 33.2%. To the end of June, Arquitos Capital was up 2.5% for 2015….
Over the long-term, an investor’s primary focus should be value creation, how much value has been and will be created with the funds invested in and deployed by the selected company. This applies to both value and growth investors. Return On Invested Capital (ROIC) is a superior guide with which to assess value creation. Indeed, ROIC can be significantly more informative than traditional investment performance metrics such as EPS, EBITDA, and ROE, all of which can be manipulated and misleading….
First published at ValueWalk.com Public family controlled firms are always a grey area for investors. In many cases, the minority shareholders have little control over management’s decisions. However, there is evidence to suggest that a controlling family can be a good thing, after all, their fortunes are tied to the success of the company. On the other hand, there have recently been a number of high-profile family-owned corporate collapses and management control concerns have led minority investors to question whether the…