How Much Business Investment Is Just Right?: Ritholtz Chart

Investing has consequences and companies that over- or underinvest tend to do worse in terms of share price than those that get it right.

Andrew Lapthorne, a quantitative strategist at Societe Generale SA, recently looked at the correlation between business investment and individual stock prices, in a report titled "How does too much or too little investment affect a company's stock price?".

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