Anheuser-Busch InBev: A Mature Stable Business With An 8.5% FCF Yield

Core Viewpoint - The investment philosophy emphasizes the importance of financial performance and valuation, with a focus on return on invested capital (ROIC) as a key metric for classifying potential investments [1] Investment Classification - Investments are classified into three categories based on ROIC: - Long-term/Indefinite: ROIC greater than 9% and capable of growing intrinsic value [1] - Medium-term: ROIC between 6% and 9% and able to maintain intrinsic value [1] - Value Traps: ROIC less than 6% and unable to meet their cost of capital [1] Investment Philosophy - The investment approach combines principles from Warren Buffett's focus on long-term moats and value creation with Peter Lynch's growth opportunities perspective [1] - The strategy aims to acquire value opportunities at a 30% discount to intrinsic value, targeting over 9% return on equity (ROE) adjusted for the equity value per share at purchase [1] Growth Estimation - Growth is viewed as a subjective variable, estimated through the product of retained earnings and the company's return on equity, considering the variability of both over the past decade [1]