Introduction
If you’re tired of chasing hype stocks and missing real gains, this might change how you invest forever.
When assessing a company’s performance, two financial ratios stand out: ROE (Return on Equity) and ROCE (Return on Capital Employed).
💡 ROE measures profitability for shareholders. The higher it is, the more efficiently the company is using its equity capital.
💼 ROCE, on the other hand, evaluates the profitability of all capital employed, including debt and equity. It’s a more comprehensive metric, ideal for assessing a business model’s overall efficiency.
Why should you track them?
- An ROE above 15% often indicates a fast-growing company.
- A ROCE above 12% combined with low debt usually points to a strong and sustainable competitive advantage (moat).
📉 Caution: A high ROE fueled by excessive leverage can be misleading. That’s why using both ratios together is essential for accurate analysis.
🏆 Smart investors combine these two indicators to:
- Identify high-quality companies
- Avoid yield traps
- Anticipate future market moves
🧠 Combine these ratios with our sector-based screening tool on Power BI to build your own GARP or Quality investing portfolio.
👉 If you are (still) not a paid subscriber, access our exclusive premium high-quality stock lists at Bullishstockalerts.com
Why Our Members Stay for Years
We walk the walk.
Every dollar we manage is invested in the same portfolio we recommend. Since launching our strategy in 2024, we’ve delivered:
📈 +29% Compound annual growth rate (CAGR)
📊 +56% absolute return in just 18 months
Past performance is no guarantee of future results, but we have confidence in our approach, and our subscribers agree.
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Looking to Educate Yourself for More Investment Strategies?
Check out our free articles where we share our top investment strategies. They are worth their weight in gold!
📖 Read them on our blog: Investment Blog
For deeper insights into ETF investing, trading, and market strategies, explore these expert guides:
📘 ETF Investing: ETFs and Financial Serenity
📘 Technical Trading: The Art of Technical & Algorithmic Trading
📘 Stock Market Investing: Unearthing Gems in the Stock Market
📘 Biotech Stocks (High Risk, High Reward): Biotech Boom
📘 Crypto Investing & Trading: Cryptocurrency & Blockchain Revolution
Stay tuned for our upcoming alerts and analyses!
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