Final Conclusions

As you may have noticed, Alphabet is easier to analyze, even considering the class action lawsuit involving a member of its executive team (with no direct implications for the company).

In the case of Inditex, we have found three gray areas (CEO salary, Amancio Ortega’s tax case, and dividend increase) that we will need to analyze in depth if we decide to continue. How many more could appear if we continue investigating?

Does this mean we shouldn’t analyze it?

It depends on each investor. Personally, I usually set aside companies with gray areas and prioritize those without them. When I finish with the “clean” companies and have time, I analyze those on the gray list.

It should be noted that companies are not directly comparable, as they belong to different sectors and countries, with different tax systems.

If we analyze how they operate and generate profits, we will see that margins are also not comparable: Alphabet, by selling digital services, can generate higher profits per sale than Inditex, which must maintain establishments and staff.

I used such different examples so that you can check the different ways of searching and analyzing companies.

Although I personally consider Alphabet to be a better business, don’t just trust my opinion. Check it for yourself.

Always remember the question: Why shouldn’t I invest in it? (time or money).