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Yeah sorry, I should have said online retailer. I had amazons original business in my mind. Of course you’re right that it’s a complex business nowadays.
by baxtr 11mo ago
Yeah sorry, I should have said online retailer. I had amazons original business in my mind.
Of course you’re right that it’s a complex business nowadays.
- cs702 11mo agoThe portion of invested capital tied up in inventory is not sufficient to judge a retailer. What we want to know/estimate is the retailer's return on invested capital (ROIC). A retailer with significant competitive advantages that can generate above-average ROIC for many years to come is a good business. If, on top of that, that retailer can be acquired at a sensible valuation in relation to such future ROICs, it would also be a good acquisition.