As an inefficient refiner, Caltex used to be one of the worst businesses on the ASX. The company devoured large swathes of capital and spat back paltry and unpredictable returns. It did this for years so, for years, we dismissed it.
Until about 18 months ago when we took another look. We found what appeared a lousy business in aggregate was in fact a combination of one terrific business and an awful one.