巴菲特對 Return on Equity 的看法

Return on Equity 的平均值是10.但巴菲特的標準是至少15. 有些優良的甚至達到30-40. "we favor busineses and industries unlikely to experience major change. wea are searching for operations that we believe are vitually certain to possess enormous competitive strenth ten or twnety years from now.". favored business must have two characters: 1) an ability to increase prices rather easily 2) an ability t oaccommodate large dollar volume increasees in business with only minor additional investment of capital.

6 creterias for selecting stock. 1) at leasts 50 million of before-tax earning 2) demonstrated consistent earning power (future projections are of little interest of us, nor are turnaround situations 3) good return on equity while employing little or no debt. 4)  managemetn in place 5) simple business (if there's lots of technology, we won't understand it 6() an offering price.