## The Essential ROE Stock Selection Logic for Investors: Unveiling the Truth Behind Return on Equity Through Buffett's Strategy
ROE (Return on Equity) is the single most favored stock selection indicator by the stock god Warren Buffett, but many investors only have a superficial understanding of this metric—thinking that higher ROE is always better, unaware of the many pitfalls hidden behind it.
## What Does ROE Actually Measure?
The core logic of ROE is simple: divide a company's after-tax profit by its net assets to get a percentage. In simple terms, it measures how much profit a company ca
View OriginalROE (Return on Equity) is the single most favored stock selection indicator by the stock god Warren Buffett, but many investors only have a superficial understanding of this metric—thinking that higher ROE is always better, unaware of the many pitfalls hidden behind it.
## What Does ROE Actually Measure?
The core logic of ROE is simple: divide a company's after-tax profit by its net assets to get a percentage. In simple terms, it measures how much profit a company ca