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is capex good? no according to wsj chart

saw a very interesting chart (50 year span) that showed companies that had the lowest capex outperformed the most and vice versa implying most companies waste money. (low capex had about 6x the money at the end)

other highlights include caveats such as early capex makes sense, but as time goes on, more capex comes in lowering the future returns, and that amazon wont be affected since they invest their money on disruptive things like a 5 billion dollar hq. (im sure GE thought the same thing when they got a golf course, revolutionary really….)

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low capex technology companies with high margins prob outperform high capex intensive companies with low margins, nah?

whats the measure. capex/cash flow, capex/market cap, capex/NI?

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you’re very right. that was actually what munger said when he called al gore an idiot a while back. 

the chart had no context as to capex ratio. just that it was discovered by kenneth french, from dartmouth!?!/ (thought he was from chicago)

I love my cheese. I got to have my cheddar.

Yeah, cluster the data in a list of industries and sub-industries and we see after.

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