Buffett's senior apprenticeWhen initially screening companies of interest, we first look at ROIC (Return on Invested Capital) and PEG (Price/Earnings to Growth ratio).
1️⃣ If ROIC is greater than 15%, it can be preliminarily considered a "good business"—companies like META, Microsoft, RELX Group, and Novo Nordisk all meet this criterion.
2️⃣ If PEG is less than 1.5 (for steadily growing companies), it can be considered reasonable. Currently, META, Microsoft, and RELX Group fall within this range, but Novo Nordisk's PEG is abnormal due to guidance adjustments.
However, this isn't absolute and serves as a preliminary reference. Different platforms may also vary, and free tools like Finviz can be used directly.
In summary, if these two indicators are suitable, it's worth further in-depth analysis 🤔
$Microsoft(MSFT.US)$Meta Platforms(META.US)$RELX(RELX.US)$Novo Nordisk AS(NVO.US)
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