Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pirah Naman who wrote (47898)	10/15/2001 1:12:54 PM
From: Jurgis Bekepuris	Read Replies (1) of 54805

Pirah, >Be careful with ROE. Remember that both R (accrual > earnings) and E (equity) are subject to accounting >distortions. I understand R distortions. Care to educate about E distortions? If you mean increasing debt, I don't buy high d/e companies. BTW, if you look at most "true blue" Buffetology candidates, the 10 years of ROE seem proof enough that distortions did not occur or did not matter. The guys distorting R (CSCO? ;-)) usually don't last for so long... :-) Anyway, you can always substitute your favorite FCF/IC instead of ROE... ;-P >I'd also be very careful if you are using the method >described in Buffettology as even without accounting >distortions it can give misleading results. Care to elaborate? Jurgis - of course DCF from the basics is more accurate

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next