📈 How Warren Buffett Selects Stocks 💼

1- Gross Margin > 40%: Indicates strong profitability by retaining a significant portion of revenue after covering direct costs.

2- SG&A Margin < 30%: Reflects a lean operating structure with potential for profit growth by keeping marketing, salaries, and overheads low.

3- R&D Margin < 30%: Balances innovation with profitability, showing good management by allocating less than 30% of gross profit to R&D.

4- Depreciation Margin < 10%: A low depreciation margin means fixed costs are not significantly reducing gross profit, indicating efficient asset management.

5- Interest Margin < 15%: Keeps interest payments low, reducing strain on cash flow and making the company less vulnerable to economic downturns.

6- Tax Margin = Corporate Tax Rate: Aligns with the standard corporate tax rate, indicating sustainability without relying on temporary tax loopholes.

7- Net Income Margin > 20%: High profitability by efficiently converting revenue into profit.

8- EPS Growth: Positive and Growing: Increasing earnings per share over time is crucial for enhancing shareholder value.

9- Cash & Debt: Cash > Debt: Ensures financial flexibility and reduces the risk of default during challenging times.

10- Adjusted Debt to Equity < 0.8: A lower ratio indicates a strong balance sheet with less reliance on debt for financing operations.

11- Preferred Stock: Fixed dividends and senior claims can limit upside potential for common shareholders.

12- Retained Earnings: Consistent Growth: Shows the company is generating profits and reinvesting them for future growth.

13- Treasury Stock: Indicates the company believes its shares are undervalued, a positive sign for investors.

14- Capex Margin < 25%: Low capital expenditures mean the company is not overextending its cash flow on long-term assets.

🌐 Links: http://mooninvestments.org/links
.
.
.
#mooninvestments #investing #trading #stockmarket #forex #cryptocurrency #passiveincome #financialfreedom