read the post b4with recent guidance, the ROE n ROA (both...

read the post b4

with recent guidance, the ROE n ROA (both critical business return measures)are slated to return to higher levels (not that current levels arent on the high end of buffets 15%)

All the businesses taken over have above average ROEs obviously!

Look a few years ago the ROE was like 30-40%, but obviously in boom times u take over a biz at higher values. As long as the acquisitions still yielded 15-20% returns on Equity , theyd be ok for takeover consideration

Return on Assets or return on invested capital is a better measure when a company has debt, and that has historically benen great. Slipped off in recent reports, but the new guidance suggests it goes back up!

obviuosly the acquisitions are paying off and yielding good returns on equity+debt!

COF hasnt succeeded as well as CDD, as their earnings have been dissappointing for the last few reportign periods as they have problems with integration and some of the bizzs they took over

CDD - look at the fundamentals - the returns on the assets of the company ( Assets = liablitlities + equity ) are much better all up .

And thats what counts and what we have to keep track of the ROE and more importantly the Return on invested capital or Return on Assets which shows how effective the management is in extracting returns on equity+debt employed for the acquisition strategy and core business.