According to Compounding Quality on Twitter, Charlie Munger emphasized that investing in businesses capable of compounding high returns on invested capital (ROIC) can lead to outperformance, even if the initial purchase price is above fair value (Source: Compounding Quality, Twitter, May 20, 2025). For traders, understanding ROIC is crucial as it signals a company's efficiency in generating profits from capital, which often translates into sustained price appreciation. This metric is especially relevant for both traditional stock traders and crypto market participants, as high-ROIC projects and companies tend to attract more institutional capital and exhibit better long-term price trends. Monitoring ROIC data can help crypto investors identify promising blockchain projects and DeFi protocols that demonstrate capital efficiency and growth potential, thereby sharpening trading strategies.