4 Quantitative tools of Warren Buffett for Investing

Hi,

The Oracle of Omaha is known for his investments and wealth creation, and therefore many people learn from his strategy. Ramdeo Agarwal- the founder of Motilal Oswal can be seen talking about him in many of his interviews.

So there is something special about investment strategy used by Warren Buffett. In this post we will talk about the 4 main factors that he uses to analyse a compant.

1. EPS( Esrning per share) growth must be positive for the last 10 years.
5* net profit > long term debt for the last 10 years.
This meand Debt to Equity (D/E) ratio will be small of that company.

2. ROE (Return on Equit) >=15%

3. ROCE (Return on Capital Employed) >= 12% for the last 10 years.

4. Free Cash Flow >0

Thanks!