The Most Important Metric in Investing: Return on Equity Part 1 | Value Investor Chatter | #60
Value Investor Chatter
English - July 02, 2019 21:08 - 22 minutes - 21.2 MB - ★★★★★ - 32 ratingsInvesting Business News Business News stock market stock penny stocks stocks stockcharts stock quotes online stock trading buy stocks online investing in stocks buy stocks Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Value investors seek companies with a high return on equity, as this is a good indicator of a company's profitability and future potential. A high return on equity means that a company is able to generate a lot of profit with the money that shareholders have invested. This is why return on equity is the most important metric in value investing.
Episode Outline
(00:00) Return on Equity: Why It Matters for Value Investors
(02:31) Understanding Profitability and Investment Decisions
(05:10) Return on Equity and Business Growth
(05:57) Operational Efficiency Ratios
(07:24) Measuring Business Profitability and Return on Equity
(09:31) Calculating Return on Equity: A Discussion
(12:15) Understanding Return on Equity: Maximizing Profitability Without Leveraging Debt
(15:00) Return on Equity and Long-Term Rate of Return
(17:08) Poor Charlie's Almanac and Return on Equity for Value Investors
(20:41) Understanding Return on Equity: A Key Concept for Value Investors
Value Investor Chatter
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