How To Select A Great Stock Using ROE – Return on Equity

I want to share with you a simple strategy that if you use it straight away, you’re going to see dramatic results.

We cover this extensively in our FREE Masterclass. So make sure you do register for it. It does always book out because we do it live and at the same time we also cover a lot of education in just 90 minutes – we compact what someone would teach in a whole day into a short masterclass. So make sure you do attend – you’ll learn a tonne in a short amount of time.

The simple strategy simply by looking at a stock’s Return On Equity (ROE).

It is a tactic that even the great Warren Buffett uses a lot – but what is it, and how do you actually use it?

ROE or return on equity basically is a measurement of the efficiency of the way that a company is able to allocate capital.

And make sure you write this down. ROE needs to be greater than 12 percent.

So whatever stock or share that you’re looking at buying – whether it’s a tip from a family or friend or something you’ve come across from your own research – make sure you check out the ROE.

If it’s greater than 12 percent, and you see it either maintain itself or at least grow over the three or five years (make sure there is a solid track record), then that is a stock that you may want to investigate further.

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