Why Returns on Capital Are The Key to Finding Great Stocks

What separates a great company from an average one? It often comes down to returns on capital — how efficiently a business turns every dollar invested into profit.

In this video, I break down why ROIC (Return on Invested Capital) and ROE (Return on Equity) are my #1 indicators of business quality, and how top companies like Hermès consistently deliver elite returns that compound wealth for decades.

🎯 Chapters / Topics Covered:
• What Returns on Capital Really Mean
• ROIC vs. ROE Explained Simply
• How High Returns Drive Long-Term Compounding
• Case Study: Hermès and Its Exceptional Efficiency
• Why I Always Start My Analysis Here

📊 Tools Mentioned:
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⚠️ Disclaimer
This video is for informational and educational purposes only and is not financial advice. Always do your own research and consult a licensed advisor before making investment decisions. All views expressed are my own. Investing involves risk, including the potential loss of capital.