In the past, if I want to invest in a FI, I used to tell myself – I don’t know how to analyze their financials, let’s skip them!
But as days, weeks, years went past, and you realise that there are numerous financial firms in of Berkshire Hathaway picks, that’s probably an indication for me to start to learn how to analyze a FI financials.
After jotting down a list of criteria and factors, I reduce it to these 4 criteria.
1. Return on Assets (ROA)
Formula: (Net Profit - One-time Gain) / Total Assets x 100%
In my opinion, Return of Assets is
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