Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 28 Jan 2018 My Price 3.00

Warren Buffett’s acquisition criteria

One of Warren Buffett’s acquisition criteria is to invest in businesses “earning good return on

equity.” The return on equity (ROE) formula uses both net income and stockholders’ equity.

Why is it important to relate net income to stockholders’ equity? Why isn’t it sufficient to merely

concentrate on companies with the highest net income?

 

Answers

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Status NEW Posted 28 Jan 2018 11:01 PM My Price 3.00

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