Value investing is not just about a low P/E ratio.

Return on Capital matters more than the price you pay.

After many years of investing, I wanted to share my view on how a low P/E ratio can trick us into actually paying more. Like everything else, investing is changing, and buying “cheap” stocks doesn’t work the way it used to.

To succeed today, quantitative analysis based on low P/E ratios is not enough. It requires business understanding, a focus on Return…