Jose Najarro

um then the reinvestment and return for reinsurance companies especially good ones tends to be decent right it might vary between 10 to 15 percent or maybe eight percent but at least you know you're compounding right um and so if you can get insurance companies at a discount and we believe we have two or three of those then you're not only getting the benefit of it's discounted

But the underlying kind of capital that they keep putting into the business compounds at least 10 to 12%.

So that's very good.

I would also say banks also tend to have an ability to reinvest and compound well over time.

Banks, however, I'm personally very picky about just because it's really difficult to get to know their underlying credit risk, especially for large banks that they have so many things.

And so I don't like having a potential

negative surprise out there that it was impossible to foresee.

But as a whole, I think their ability to continue reinvesting over time is at least decent.

So those, I would say, tend to be there.

But then it's a matter of getting creative and where the stage of companies are.

So, for example, railroad companies.

When they first started, I would argue that the return on invested capital was very, very poor.

It was a new technology back then.

In fact, there could be many parallels done between the railroad industry in its early days and what's happening now with AI, a lot of fraud, a lot of people willing to put a lot of money into it, etc.

And a lot of those people lost a lot of money in doing so.

But over time, as it matured, I would argue that now those companies tend to have high returns on invested capital.

Now it's very highly regulated.

It's almost a sort of oligopoly type of environment, and they have very strong modes, et cetera.

I wouldn't say I wouldn't necessarily buy any of them at these prices.

Don't get me wrong.