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Buffett looks for businesses with a high return on equity from "summary" of Warren Buffett's Ground Rules by Jeremy C. Miller
Warren Buffett's investment approach centers on seeking out companies that can generate high returns on equity. This key criterion is a fundamental aspect of his strategy when evaluating potential investments. Return on equity is a measure of how effectively a company is utilizing its shareholders' equity to generate profits. Buffett values businesses with a high return on equity because it indicates that the company is efficient in generating profits from the capital invested by shareholders. By focusing on businesses with high returns on equity, Buffett aims to invest in companies that have a strong track record of generating pro...
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