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 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.

Amazon vs. Alibaba

The businesses of Amazon and Alibaba are almost the same in all aspects, so the two are highly comparable. Just as Amazon’s stock price is not very good this year, and Alibaba has collapsed by more than 40% now, let us compare the two e-commerce giants in China and the United States. Alibaba is a … Continue reading “Amazon vs. Alibaba”

At least figure out those things before investing in a business?

Investors (especially those who are new to the stock market) are distressed; before investing in a company’s stocks, at least the things must be understood, that is, the minimum investment homework should include those. This is the purpose of this article. The most basic requirements described in the first and second paragraphs will not take … Continue reading “At least figure out those things before investing in a business?”

US and Taiwan stocks investors have very different valuation methods

Let me start with the conclusion. The valuation method of U.S. stock investors is mainly based on the Price-to-Sales Ratio (P/S or PSR). It also talks about the P/E ratio, but it does not pay as much attention to the price-to-sales ratio (please note that I mean relatively speaking, the PE ratio is of course … Continue reading “US and Taiwan stocks investors have very different valuation methods”

Why I prefer growth stocks instead of value stocks?

The weird investment preference of Taiwanese Most investors in Taiwan generally believe that “deposit stocks” should be value stocks and exclude high-volatility growth stocks; I think it is mainly related to the investment habits of Taiwanese investors. How to say? Taiwanese investors have the following three extremely special preferences, all of which are fatal (compared … Continue reading “Why I prefer growth stocks instead of value stocks?”

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