Roger Montgomery: 'Here are 15 Australian listed businesses that generate high rates of return on equity, while also suggesting their possible competitive...

Roger Montgomery: 'Here are 15 Australian listed businesses that generate high rates of return on equity, while also suggesting their possible competitive advantages. The key is to find companies whose underlying businesses might help to mitigate the risk of permanent capital loss. The very best businesses to own are simply those that have the ability to take large amounts of incremental equity capital and generate very high rates of return. Warren Buffett summed it up best when he said: All we want is big equity and big returns on equity. To generate those high returns sustainably, it usually helps that the company has something that is defendable against competition. Also known as a sustainable competitive advantage, businesses that have such characteristics are able to generate higher rates of return than their competitors, setting themselves, and their owners, up for a bright future. Full ASX article here: (VIEW LINK)