Like Buffett, Bill was a student of Benjamin Graham. Sequoia Fund, that he managed had consistently outperformed the market.

This post is a look at Bill’s rule for smart investing.

The single most important indicator of a good business is its return on capital. In almost every case in which a company earns a superior return on capital over a long period of time it is because it enjoys a unique proprietary position in its industry and/or has outstanding management.