Four Types of Businesses

Investment Analysis

In this report I provide a framework for categorizing businesses into 1 of 4 types. To determine what type of business a potential investment is, I suggest analyzing a business on 3 primary characteristics: 1) the return on invested capital of the business; 2) the potential for reinvestment in the business; 3) the capital intensity of the business.

Four Types of Businesses

 

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Value Investors Journal