When it comes to owning a business– the two factors that matter most are:
- Strong Return on Invested Capital
- Reinvestment Opportunities
The combination of these two factors over long periods of time creates truly great businesses. ASX-listed Mineral Resources Limited (NYSE:MIN) is a wonderful example of this.
Source: FY19 result presentation
MIN provides low-cost mining infrastructure services through its profit-sharing model, which involves the acquisition of undeveloped resource assets that can benefit from its mining infrastructure services. Specifically, MIN funds the design and construction of a mine in return for equity in the