220: Management Quality vs Tangible/Intangible Assets, Growth vs ROIC, Nvidia BlueField-2, Snowflake vs AWS, F-14 Birthday, and Economic Value of Aging
220: Management Quality vs Tangible/Intangible Assets, Growth vs ROIC, Nvidia BlueField-2, Snowflake vs AWS, F-14 Birthday, and Economic Value of Aging
did you read "Boyd: The Fighter Pilot Who Changed the Art of War". That book (and Boyd) absolutely skewers the F-14 Tomcat as too heavy, "lumbering & poor-performing". "The variable sweep wing design [like the one on the F-14] was one of the major aviation engineering blunders of the century" Fixed wing is better, lighter is better - like the Boyd-designed F-15 (which the Air Force still "gold-plated" with added weight and other elements that degraded dog-fighting capability.
I'm sure you read that book - if not, I highly recommend it. John Boyd was a very interesting person with a great life history.
main problem of roic for me is that some expenses too are also actually investments (r&d, s&m). not too much for established businesses maybe but i believe you can not really analyze a company that is in the fast growing phase with roic
RE: Growth vs. ROIC - I feel like this is the type of things Mr. Leonard over at Constellation Software has struggled with when making capital allocation decisions. CSU's more recent pivot to lower their hurdle rate I think speaks to his acknowledgment of the focus to fuel growth over higher or sustaining super-high ROIC.
Growth vs ROIC- This is a concept discussed in a number of business and investing books, BUT the graph you provided was really good. I think it feels more exact and quantitative when I see it in a graph, vs the opinion of an individual person or investor.
It reminds me a little of Billy Beane and the concept that "opinions are great, but what does the data say."
Re: F-14 :
did you read "Boyd: The Fighter Pilot Who Changed the Art of War". That book (and Boyd) absolutely skewers the F-14 Tomcat as too heavy, "lumbering & poor-performing". "The variable sweep wing design [like the one on the F-14] was one of the major aviation engineering blunders of the century" Fixed wing is better, lighter is better - like the Boyd-designed F-15 (which the Air Force still "gold-plated" with added weight and other elements that degraded dog-fighting capability.
I'm sure you read that book - if not, I highly recommend it. John Boyd was a very interesting person with a great life history.
wabuffo
main problem of roic for me is that some expenses too are also actually investments (r&d, s&m). not too much for established businesses maybe but i believe you can not really analyze a company that is in the fast growing phase with roic
RE: Growth vs. ROIC - I feel like this is the type of things Mr. Leonard over at Constellation Software has struggled with when making capital allocation decisions. CSU's more recent pivot to lower their hurdle rate I think speaks to his acknowledgment of the focus to fuel growth over higher or sustaining super-high ROIC.
Growth vs ROIC- This is a concept discussed in a number of business and investing books, BUT the graph you provided was really good. I think it feels more exact and quantitative when I see it in a graph, vs the opinion of an individual person or investor.
It reminds me a little of Billy Beane and the concept that "opinions are great, but what does the data say."
I enjoyed reading this article! Happy Christmas, buddy.
Happy Holidays, Liberty!