Here is a quick five minute video about Return On Equity (ROE) Warren Buffet considers a good and consistent ROE a favorable sign for choosing a company. ROE, expressed a percentage, is a measure of the company's profitability in relation to the Equity. Higher the ROE, the better. But beware of the debt situation(will be discussed in future videos). The method of calculating ROE is to divide the NET EARNINGS(Profit) of the company by its Equity. I intend to explain the concept in a very simple manner, assuming the viewer has zero financial knowledge. I assure there is no financial jargon to confuse you. Higher level concepts like including/excluding preferred equity and the pitfalls of using ROE are not discussed here. Music Copyright: https://www.bensound.com/ (bensound-hipjazz, bensound-sunny,bensound-tenderness) https://twitter.com/ForSimplified https://wordpress.com/home/moneyforlifesai.wordpress.com https://www.facebook.com/profile.php?id=100069854466781