Monday 24 March 2014

Buffet Quality Investment

According to Business Insider with this simple metrics everybody can figure out if an stock could be Buffet material.

1. Look for consistently Return on Equity:

RoE = Net Income / Shareholder equity > 15% and better than it's peers

2. Conservatively financial:

Debt / Equity < 1

3. Margin of safety:

Price / Book and Forward Price / Equity.
The lower this ratios are, the better the value.

Source
http://www.businessinsider.com/invest-like-warren-buffett-2014-3

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