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The best time to buy shares in any company is when they’re out of favour with investors. And this has been the case with InterContinental Hotels Group (LSE:IHG).
The stock’s down 22% over the last month, but it’s outperformed the FTSE 100 over the decade. So could this be my opportunity to buy a stock I’ve had my eye on for some time?
Cash generation
The thing I like most about InterContinental Hotels Group is that it has a business model that delivers huge cash generation. And at the end of the day, that’s what investing’s all about.
Over the last 10 years, the company’s reinvested just 5% of the cash it has generated through its operations back into its business. The rest has been made available for shareholder returns.
Importantly however, this hasn’t come at the expense of growth. Revenues have grown at an average of 12.5% a year during this period,…
