Join us for Episode 356 of the Investing for Beginners podcast, where Dave and Andrew explore high-ROI companies with over $2 billion market cap, offering insights into their impressive financial metrics.
[00:00:51] Criteria for Selection
Companies selected have a return on equity (ROE) of 377% or higher.
[00:01:20] Discussion Approach
Dave and Andrew discuss companies off-the-cuff, sharing insights and analysis.
[00:02:01] Understanding High ROE
Exploration of factors driving high ROE, like increased net income or reduced equity.
[00:03:49] Software Companies
Discussion on software companies like GoDaddy and Fortinet with high margins and ROE.
[00:05:28] Operating Margin Expansion
GoDaddy’s operating margin expansion boosts earnings, illustrating growth potential.
[00:07:30] Home Depot’s ROE
Home Depot’s high ROE due to positive equity shift from acquisitions.
[00:10:05] Return on Invested Capital
Importance of using return on invested capital for evaluating capital efficiency.
[00:13:10] Booking vs. Airbnb
Comparison of Booking and Airbnb, discussing growth potential and business models.
[00:19:53] Hotel Franchise Models
Exploration of hotel franchise models like Marriott and Choice Hotels for investment.
[00:26:25] Airbnb’s Market Position
Airbnb’s appeal to affluent customers and potential growth limitations discussed.
[00:28:36] Colgate-Palmolive’s Stability
Colgate-Palmolive’s predictable growth and stability make it an attractive investment.
[00:32:11] Low Volatility Stocks
Benefits of investing in low volatility stocks for consistent, long-term growth.
Today’s show is sponsored by:
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You can find the transcript of today’s show below:
