Re: What\'s Up With BUD - can someone explain this?
Cat said "as long as they don't borrow too much and overleverage the company." That's exactly what BUD has been doing over the last 10 years or so*. Here's a fun exercise with BUD. Compute ROE for each of the last 10 years. Neat, huh? Looks like an internet company, right? Now compute ROIC for the same period. It's still great, but it sure didn't grow very much like ROE did.
-web
* Why? My theory: to turn a single digit earnings growth story into double digit EPS growth. Gilding the lily for Wall Street's growth crowd. Happened for umpteen consecutive quarters until very recently. Reminds me of that famous law that says, "Things that can't go on forever, don't."
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