This post is a loose summary of a recurring conversation I've been having with a few friends of mine recently.| basehitinvesting.substack.com
Owner of high quality assets (39% ROIC, 20 years of consistent FCF) that has recently changed its corporate strategy and capital allocation; now buying back shares at a 7-8x FCF| basehitinvesting.substack.com
Well-run bank with a multi-decade history of compounding earnings and tangible book value per share at 15% per year; trades at 7.6 P/E; well-capitalized balance sheet; excess cash for buybacks| basehitinvesting.substack.com
Durable assets, high ROIC royalty model, 29% insider ownership, 15 years of sizable annual FCF in good and bad economies, at a 27% FCF yield| basehitinvesting.substack.com
I've noticed three common themes with Buffett's recent investments in energy and Japan: low valuations, improving capital allocation, and rising ROIC's.| basehitinvesting.substack.com