A high-quality business has three fundamental attributes: return on capital employed far above the cost of capital, a strong competitive advantage or moat to sustain higher returns on capital for a long period, and sufficient reinvestment opportunities within itself at higher returns on capital to become a compounding machine.

definitionpending

Speaker

Gautam Baid

Evidence Quote

A high-quality business has three fundamental attributes: return on capital employed far above the cost of capital, a strong competitive advantage or moat, and sufficient reinvestment opportunities at higher returns on capital.

Source

Investing in Quality Businesses & the Art of Lifelong Learning w/ Gautam Baid (TIP566)The Investor’s Podcast
Created: 8/12/2026, 10:28:19 PM

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