Deep Value

Brand Names: Important, But Not Key to Investment Decisions

Good article. Branding is extremely important, no doubt. But from an investment perspective would you consider a company to have a strong brand even if it didn't translate to higher ROIC compared to its competition?

Isn't a company's brand or any other 'qualitative' measure only as significant as the quantitative evidence of its existence. In other words, a company with a strong brand should have higher margins than a company with a weak brand. If not, that company must not have a strong brand if it doesn't translate into pricing power.

True or no?