Re:"in a normal year BHP makes a 40% EBIT margin... banks are around 20%, WOW makes about 6%".
-------- That's cool - I like this table... now please rank these in terms of risk...
Food - safe. Banks - hmmm - a little less safe Mining - Great return or crash and burn.
That EBIT ranking actually is reasonable.
Now - 1. I don't know what a reasonable return is for the increased risk - I'm happy we discuss this. 2. BHP and mining companies SHOULD make a greater EBIT. Higher risk = higher return.
