This is an article originally shared by MR Tan KW, i found the ROE discussion by Warren Buffett is SUPERB.
please read the article by this link:
http://klse.i3investor.com/blogs/kianweiaritcles/75046.jsp
Orginally article from the Forbes:
http://fortune.com/2011/06/12/buffett-how-inflation-swindles-the-equity-investor-fortune-classics-1977/
WB explore more than the mere DuPont ROE that usually get analyzed. Every value investor should know the importance of ROE.
Following the thought of an legendary investor thrills me and it is fun (hopefully you also, I read this article twice only can understand it).
The presentation of data and thought is, I must say (in promotional tone) eloquent!
Enjoy your reading, the time will be well spend.
Created by contemplator | May 22, 2015
Hi rlch, i am not interested in gambling stock, hence i am not sure its ROE. High ROE boasted with extravagant debt is not a good way to make investor rich. Debt level can be seen in total asset/ shareholders' equity. I DON'T KNOW THE DEBT LEVEL OF BJ TOTO :)
2015-05-14 09:54
total asset/ shareholders' equity more than 1.5 should warrant you to look clearer into current ratio, DOE and CAPEX
2015-05-14 09:56
rlch
Please find out how much is BJ Toto ROE to show that you are not a bias bloggers unlike many found in i3.
2015-05-13 15:02