Return on invested capital (ROIC) is used to assess a company's efficiency at allocating the capital under its control to profitable investments.
I guess the stock that has good ROIC & at a fair value is $Coca-Cola(KO)$.
Is a good company [Like] , backed by Warren Buffett
.
I sees that its stock price movement is very stable.
Even after falling greatly, it will move back up within only a few days.
It also provide good dividends to investors.
If u are a dividend KING 🤴, then u may wanna hold on to $Coca-Cola(KO)$as a long-term investment. 10 years no worries , I guess
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Will you focus on the ROIC of the stock?
It depends .
If I'm hungry/desperate for 💰 , I may take on a higher risk company stock instead to give me a greater ROI.
It's just how much u can stomach the volatility & a possible loss 📉 .
So, DYODD & make the own choice .
If u are a person who can't stand volatility, I suggests u not to hold any risky stocks that may have great return .
ROCI stocks may be more suitable for u .
DYODD before investing
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