High Return on Equity Is the Sign of an Outstanding Business

If you don't have us severely indebted business, and there's not that many liabilities, then owner then shareholder's equity is going to be very close to the assets. Because it doesn't take a lot of assets to produce this amount of income. And i think that why these superinvestors like it when they talk about high roe being the sign of an exceptional business,. I think it has to do with free cash flow.