In Buffett’s 2020 shareholder letter, he mentioned several common but unreasonable accounting techniques used by CEOs of US-listed companies in their financial statements: especially EBITDA and financial forecasts.
Category: EPS
Gross margin is a great indicator to judge the management
The simplest indicator to judge the execution of the management: Gross Margin
ROE, the most important management indicator
The Return On Equity (ROE) algorithm is “net profit after tax/shareholder equity × 100%”, which is one of the few financial figures that can be used to measure the operational performance of a company’s leadership team. It represents the efficiency of the company’s profit for shareholders, and it can also be said to measure the company’s overall capital utilization efficiency. Therefore, the higher the value, the better.
The commonalities of Buffett portfolio – cheap, fixed income, repurchase
I recently took a general look at Buffett portfolio , and I made some big discoveries. Buffett basically only invests in companies with fixed cash flow income. He likes companies that actively implement stock repurchases. Almost every shareholding has dividends. He likes cheap companies.
Outsiders, one of the greatest investment books for managment team
Outsiders, I recently re-read several investment books and found that one of them is worth recommending to everyone — “Outsiders”.
Valuation methods significant different between US and Taiwan investors
Valuation methods significant different between US and Taiwan investors, P/S vs P/E ration
Why I prefer growth stocks instead of value stocks?
Why I prefer growth stocks instead of value stocks?
