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Focus on return on equity, not earnings per share.

“Focus on return on equity, not earnings per share.” quote by Warren Buffett
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“Focus on return on equity, not earnings per share.”

Warren Buffett

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Investors should prioritize long‑term equity returns over short‑term earnings metrics.

In simple terms: Focus on equity returns, not earnings.

Key Takeaway

Prioritize sustainable value creation.

Themes

finance investment strategy

Mood

analytical pragmatic

Type

financial educational

When to use this quote

  • portfolio review
  • annual budgeting
  • shareholder meetings

Key Concepts

value investing risk management

Questions to Reflect On

  • How do you assess a company's true value?
  • What metrics complement return on equity?
A Different Perspective

Earnings still affect market perception.

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