The company we report on today has achieved an incredible 105% average return on invested capital (ROIC) since inception. Even more impressive, the company has had only one losing year over this period – in 2011, when it generated a modest loss of -2% ROIC. It might be one of the most asymmetrical opportunities we have seen in years.
When Shelby Davis died in 1994, his portfolio had achieved a compound annual growth rate of 23% for an incredible 47 years. He is the best demonstration of the third rule of great investing: compounding over the long term.
You can avoid losing money by only buying these “inevitable” businesses that are virtually certain to continue growing for decades. And, if you’re willing to do so, just like Warren Buffett with insurance float, you can safely use other people’s money to create life-changing wealth.
If you’re a good investor, the more leverage you can use, the more money you will make. And the key to using leverage safely is having a very efficient portfolio. Over the next three days, Porter will demonstrate to readers how to do this
What you are looking for in smart, conservative investing is the very small number of businesses that will compound your wealth over a very long period of time, at market-beating rates. How many stocks can do this? Porter provides answers.
Social Security and Medicare’s unfunded liabilities total over $100 trillion! People believe, falsely, that these promises are funded in some way, that the money they’ve paid into the system over the years will be there for them. That’s all nonsense. The money was never invested. And you don’t own the rights to anything.