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Showing posts from July, 2020

How I pick shares- Part 4 (Return on Capital)

The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine. - Warren Buffett Apologies first to regular readers* for the delay between publishing  part 3 and this part 4 of How I pick Shares - I'm not entirely sure where the last month has gone? Perhaps the sheer novelty of being able to escape the house finally has started to eat up time that I previously had? I even went to Wales to see family last weekend! Anyway I'm sorry- normal posting every other week is being resumed. Many years ago, I remember my father teaching me a valuable lesson about buying things for the house. He recalled that when he and my mother were first married that they had very little money indeed. My mother had won a Bride of the Year competition (!) and part of the winnings was a deposit on a new home. So beyond their wildest dreams, they shared a lovely new home, but hardly had a stick of furniture t