No. of Recommendations: 3
This is mostly for mungofitch but anyone who wants to contribute thoughts is very welcome. Unless their thoughts come straight from an AI, of course ;-)
I believe Jim has used high ROE as a filter / screen for picking out groups of stocks that should average high returns over various periods, and also as a component within more complex screens.
My question is quite simple. Some businesses have highly cyclical ROE. UK housebuilders just now for example, ROE is extremely low; in boom times, it's very high.
How are you calculating ROE? Are you focusing on non-cylical sectors (medical devices!) or are you making a trend adjustment of some kind for cyclicals?
TRS
