roic
Sustained ROIC on SHH+SHZ from 2000 to 2025. 4.54% CAGR vs 7.30% SPY benchmark. Quality spread still works (+1.67% vs low ROIC) but state influence and retail sentiment dilute the signal.
roic
Sustained ROIC on HKSE from 2000 to 2025. -0.48% CAGR vs 7.30% SPY. Negative absolute returns, but the persistence premium (+1.76%) still separates sustained from single-year ROIC.
roic
We backtested sustained ROIC on 13 exchanges worldwide. India leads at 15.55% CAGR (+8.25% alpha). Clear geographic divide between emerging markets where quality works and Asian markets where it breaks down.
roic
We screened US stocks for ROIC above 12% in 3+ of the last 5 fiscal years. Over 25 years, the sustained ROIC portfolio returned 8.86% annually vs 7.30% for the S&P 500. Modest alpha, but 77.5% down capture and -36.3% max drawdown tell the real story.