Biases like overconfidence, loss aversion, and anchoring make it difficult for managers to assess market changes objectively and adjust factor exposures accordingly.

New formats are more capital efficient than older ones and hence the incremental ROCE is higher along with a long runway for growth leading to high growth and high ROCE. 

How does one find high-growth companies? To start with it’s important to find a pond with a lot of fish which are of high-return variety.