Seek out companies with high returns on equity from "summary" of Buffettology by Mary Buffett,David Clark
When looking for companies to invest in, one key factor to consider is their return on equity. Return on equity is a measure of how efficiently a company is using its shareholders' equity to generate profits. This metric is calculated by dividing a company's net income by its shareholders' equity. Companies with high returns on equity are generally considered to be more profitable and efficient than those with lower returns. This is because a high return on equity indicates that a company is able to generate a strong profit relative to the amount of shareholder equit...
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