No. of Recommendations: 4
Hi Jim,
I am surprised by your statement that ROE does not matter much. I have read many of your “mechanical investing” stock selection posts where you use a minimum ROE to filter for “high quality” stocks.
I know ROE can be very distorted after huge stock repurchases, as equity can even become negative. But surely a consistently low ROE can’t be good.
Another supposedly steady growing recession proof company, Becton Dickinson too sports single digit ROEs, unlike most medical device/ supplies company. And stock is at multi year lows - up only 22% in 10 years.
Thanks.
