The Higher These Numbers, The Better

The Investment Perspective – August 2026

Peter Flannery Financial Adviser CFP

“Neither the investing method nor the fundamentals of the business are right or wrong because the mood of the market is favourable or unfavourable toward the “stock”. That is because when you really think about it, “stocks” (shares) are all about the financials and the trading price, the share price… the cash up value. What matters more is the economics of the business” 

Peter Flannery

Key Points:

  • Return on Invested Capital (ROIC) above 15%, sustained over many years, is the benchmark for a genuinely quality business
  • Return on Equity (ROE) of 15-20%+ only counts if it’s achieved without excessive leverage
  • Consistently positive, growing free cash flow and disciplined capital allocation matter as much as the headline return
  • These measures are most powerful viewed together, over decades, not chased in any single year
Click Here To Read This Month's Investment Perspective - August 2026
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