Warren Buffett knows the insurance business like the back of his hand, and openly raves about how it allows companies to “invest in other people’s money and keep all the earnings on those investments,” writes Validea CEO John Reese in this week’s TheStreet. In his 2015 letter to Berkshire Hathaway shareholders, however, Buffett says that underwriting profits generated from this “float” have been increasingly threatened due to low interest rates and keen competition in the… Read More
When Warren Buffett is on the hunt for strong companies, one of his go-to metrics is return-on-equity, writes Validea CEO John Reese in his latest article for Nasdaq. Reese explains how ROE is calculated, its implications and what levels make a stock attractive. He also addresses the importance of dividend yield and how investing guru James O’Shaughnessy viewed it as an “essential metric when evaluating large companies.” Using his guru-based stock screening models, Reese identifies… Read More