No. of Recommendations: 6
Thanks to terrific feedback, I'm implementing two small changes to my methodology.

First, instead of just measuring Return on Equity under the "Financials" heading, I've changed that category to Returns on Capital. I'll be looking at ROE, ROA (Assets), and ROIC (Invested Capital) instead of just ROE to come up with a number. Also, instead of just a point in time estimate, I'll be looking at long-term trends using y-charts. If the numbers are still low but rising, I'll consider adding 1 extra point.

The point of this category is for a company to prove to me that it is creating value with its capital. While ROE is a good metric, it can be also be gamed with debt/buybacks. In addition, one-time net income hits can alter these metrics, so looking over a longer period of time makes more sense.

Thanks to TMFRichDad for his great advice on that change.

Second, under the "Foreign HQ" in the Gauntlet, I'm also tweaking it. Starrob pointed out that some countries rank lower on measures like "Corruption" than the U.S. (U.S. doesn't even make it into top 10!) as well as "best place for business". As a result, I'm not going to penalize companies that rank better than the U.S. on these lists (Examples include Canada, U.K., Germany, Switzerland, Ireland, Australia).

Full list can be found here: &

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