THE FINANCE GHOST: Bored rooms beat boardrooms

It’s incredible how often the “boring” companies deliver the best returns. Usually run by the accountants who enjoyed auditing and tax at university rather than finance, they stick to their knitting and play it safe with the balance sheet. Over time, they deliver slow and steady returns that add up to an impressive long-term compound annual growth rate.

The market tends to ignore these companies, with low traded multiples and high payout ratios . By not placing any value at all on the underlying growth in the business, the market underestimates the benefit of sensible reinvestment in the business and the power of share buybacks in turbocharging growth in headline earnings per share...

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

COP27: Banks must ‘change their view on risk’ to enable climate financeNedbank sustainability head says SA’s investment plan has been well received but a lot of work remains to tie down funding
Source: BDliveSA - 🏆 12. / 63 Read more »

Ghana finance minister apologises for economic hardship - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Ghana's finance minister Ken Ofori-Atta said on Friday that he was 'truly sorry' for the country's economic hardship but insisted that he was competent for the role in remarks to a parliamentary committee set up to investigate his conduct.
Source: SABCNews - 🏆 37. / 51 Read more »