For long-term investing, I loo

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For long-term investing, I look into ROE, P/E, and P/B. Example OCBC's $OCBC Bank(O39.SI)$ ROE was 12.6% in the first half of 2025, showing solid profitability. With a P/E ratio around 10.3 and a P/B of 1.25, the bank appears reasonably valued. These metrics, alongside a stable asset base, suggest a resilient and potentially attractive long-term investment. @Tiger_comments @MillionaireTiger @TigerStars @TigerEvents

# Long-Term Investing: Look at ROE or PE?

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In his 1981 shareholder letter, Warren Buffett also pointed out that if PE remains unchanged, a company with 14% ROE will generate a long-term investment compound return of 14% as well.\nWhen picking stocks for the long run, do you focus more on ROE or PE? Why?\n\nDo you think ROIC and FCF are more important than ROE in compounding?\n\nIf you could only choose one metric for a 10-year investment decision, which one would it be?\n\n","image":"https://community-static.tradeup.com/news/c4d813c9d69507df2f8fc55ecc8e711a"}],"images":[{"img":"https://community-static.tradeup.com/news/cd4a03b1ba978f082848751bacae1d8f"}],"coverImages":[{"img":"https://community-static.tradeup.com/news/cd4a03b1ba978f082848751bacae1d8f"}],"html":"<html><head></head><body>For long-term investing, I look into ROE, P/E, and P/B. Example OCBC's <a href=\"https://ttm.financial/S/O39.SI\">$OCBC Bank(O39.SI)$</a> ROE was 12.6% in the first half of 2025, showing solid profitability. With a P/E ratio around 10.3 and a P/B of 1.25, the bank appears reasonably valued. These metrics, alongside a stable asset base, suggest a resilient and potentially attractive long-term investment. <a href=\"https://ttm.financial/U/3501196737273098\"> @Tiger_comments </a><a href=\"https://ttm.financial/U/3527667618821228\"> @MillionaireTiger </a><a href=\"https://ttm.financial/U/9000000000000149\"> @TigerStars </a><a href=\"https://ttm.financial/U/3527667667103859\"> @TigerEvents </a> <t-t type=\"img\" src=\"https://community-static.tradeup.com/news/cd4a03b1ba978f082848751bacae1d8f\"></t-t></body></html>","htmlText":"<html><head></head><body>For long-term investing, I look into ROE, P/E, and P/B. Example OCBC's <a href=\"https://ttm.financial/S/O39.SI\">$OCBC Bank(O39.SI)$</a> ROE was 12.6% in the first half of 2025, showing solid profitability. With a P/E ratio around 10.3 and a P/B of 1.25, the bank appears reasonably valued. These metrics, alongside a stable asset base, suggest a resilient and potentially attractive long-term investment. <a href=\"https://ttm.financial/U/3501196737273098\"> @Tiger_comments </a><a href=\"https://ttm.financial/U/3527667618821228\"> @MillionaireTiger </a><a href=\"https://ttm.financial/U/9000000000000149\"> @TigerStars </a><a href=\"https://ttm.financial/U/3527667667103859\"> @TigerEvents </a> <t-t type=\"img\" src=\"https://community-static.tradeup.com/news/cd4a03b1ba978f082848751bacae1d8f\"></t-t></body></html>","text":"For long-term investing, I look into ROE, P/E, and P/B. Example OCBC's $OCBC Bank(O39.SI)$ ROE was 12.6% in the first half of 2025, showing solid profitability. With a P/E ratio around 10.3 and a P/B of 1.25, the bank appears reasonably valued. These metrics, alongside a stable asset base, suggest a resilient and potentially attractive long-term investment. @Tiger_comments @MillionaireTiger @TigerStars @TigerEvents","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/473500945002672","repostId":0,"isVote":1,"tweetType":1,"viewCount":1355,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["O39.SI"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":["晒单贴"],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":358,"optionInvolvedFlag":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}