Needless to say, it's not just about targeting one component of a company's performance when deciding on whether or not to invest. In this instance, price.
There are, or, IMO, should be, several other factors from within a company's financial statements that should preferably simultaneously combine in order to indicate that its business performance merits consideration for investment in that company.
I believe I alluded to that in a previous post on this board and included a reference as to what Warren Buffett looks for prior to buying its stock.
Of course, those criteria are related to his search for companies with Durable Competitive Advantage, which, by their very nature, are few and far between. However, I'd say that if one lowered those "targets" slightly one would still be looking at companies that should prove good investments ...
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