Post #14358 by rnam on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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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.

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