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Showing posts with label high ROE. Show all posts
Showing posts with label high ROE. Show all posts
Saturday, 21 September 2019

The Possibility of Reinvesting More Capital in companies with High Returns on Capital

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Bear in mind that the potential for companies with high returns on capital to reinvest a lot of capital are limited, since they tend not...
Wednesday, 28 March 2018

Return on Shareholders' Equity

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SHAREHOLDERS' EQUITY/BOOK VALUE                Balance Sheet/Shareholders' Equity ($ in millions) Total Liab...
Saturday, 29 April 2017

Accounting Return on Equity

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Return on Equity (ROE) measures the rate of return earned by a company on its equity capital. It indicates how efficient a firm is in g...
Monday, 9 January 2017

The importance of high ROE when selecting your stocks for the long term (Warren Buffett)

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In his newsletter to Berkshire Hathaway's shareholders in 1987, Warren Buffett wrote a brilliant piece on his focus on return of equity...
Saturday, 17 December 2016

ROE as a proxy for Competitive Advantage

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The DuPont formula ROE= (Net Profit/ Sales) X (Sales/ Assets) X (Assets/ Equity) And we are left with:    ROE  = Net Profit/ Equity ...
Tuesday, 22 December 2015

The best type of business to own

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Businesses with Good Fundamentals - the best type of business to own The best type of business to own is "one that over an extende...
Thursday, 15 January 2015

Investment in Giant Enterprises. But how successful are they from the standpoint of the investor?

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Let us take a look at the top listed companies in the stock market with either the highest assets or highest sales.  All of these enterprise...
Monday, 13 January 2014

Return on Equity (ROE) - the financial metric that investors should use to judge a company's annual performance

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Buffett considers earning per share a smoke screen. Most companies will retain a portion of their previous year's earnings as a way to...
Monday, 10 September 2012

Evaluating a Company - 10 Simple Rules

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Having identified the company of interest and assembled the financial information, do the following analysis. 1.  Does the company have a...
Friday, 31 August 2012

Excellent businesses that can consistently earn high ROE are often bargain buys even at seemingly very high P/E ratios.

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The secret that Warren has figured out is that excellent businesses that benefit from a consumer monopoly, that can consistently earn ...
Sunday, 24 June 2012

Differing amounts of debt financing cause changes in EPS and thus a company's stock price.

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Effect of Changes in Sales or Earnings on EBIT   Differing amounts of debt financing cause changes in EPS and thus a company's stoc...
Sunday, 22 April 2012

BUFFETT'S TENETS

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Roger Lowenstein, in his excellent book on Buffett, suggests that Buffett’s success can be traced to his adherence to the basic notion t...
Saturday, 25 February 2012

Warren Buffett favours companies that increase their ROE or which have consistent levels of ROE.

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INVESTMENT DANGERS There can be dangers in averaging returns over a long period. A company might start with high rates which then fall away...

Buffett likes companies with high and increasing returns on equity (ROE)

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HIGH RETURNS ON EQUITY Buffett is interested in companies that have rights rates of earnings on equity and likes them even more where the ...

Warren Buffett's secret - THE COMPOUNDING FACTOR

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EXPLANATION This may be old hat to some readers but it is worth remembering how compounding is one of the keys to Warren Buffett’s investme...
Wednesday, 8 February 2012

7 Important Stock Investing Advice from Warren Buffett!

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Summarized Overview In this article, you’ll find information on the stock investing ideas that Warren Buffet wants all stock investors t...
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Friday, 3 February 2012

3 Investing Traps -- And How To Avoid Them

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These tips should help you sidestep some common accounting pitfalls. Alcoholics have 12 steps. Grievers have five stages. Investors have ...