--- Max Sawicky <sawicky at bellatlantic.net> wrote: >
>
> In principle profit *levels* would seem to be meaningless.
> Other things equal, I'd rather own a small company making
> 10% than an equivalent piece of a large company making 5%.
> What should matter is return to capital, but measuring
> capital is not casually done.
>
Much care needed here. You need to be considering your *own* return on invested capital, not the company's. If the company is making 30% on book equity but you pay three times book for it, you're getting less bang for your buck than if it makes 10% and you pay half book.
dd
===== ... in countries which do not enjoy Mediterranean sunshine idleness is more difficult, and a great public propaganda will be required to inaugurate it. -- Bertrand Russell
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