Look for companies with a history of reinvesting profits wisely from "summary" of The Little Book That Builds Wealth by Pat Dorsey
When searching for companies to invest in, it is critical to pay attention to how they utilize their profits. One key characteristic to look for is a history of reinvesting profits wisely. This means that the company does not simply hoard its earnings or pay them out in excessive dividends, but instead puts them back into the business in a way that will generate future growth and success. Companies that consistently reinvest their profits in ways that enhance their competitive advantage are more likely to see long-term success and share price appreciation. This can take many forms, such as investing in research and development to create new products or tec...
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