Tip: Simply look at the 10-year average, if it's not above 10%, skip.
ROIC: Check last 10 average, last 5 average, last year.
Check the 4 Growth Rates: Sales; EPS; Equity; Cash
By calculating growth rates of 2 competing companies, you can really see what's going on and who's got the wider Moat in the industry.
Buffet loves companies that buy their stock back when it's cheap. Good for owners.
Rule on Debt: To determine if debt is reasonable, find out if it can pay off its debt within 3 years by dividing total long-term debt by current free cash flow.
The Rule shows us that companies priced well above their value are the first to go down in a market downturn.
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