"Top Firm Drops Netflix and Nvidia as Quality Stock Picks"
As earnings season ramps up, investment firm Jensen focuses on return on equity (ROE) as a key metric for assessing the financial health of companies. They only invest in companies that have achieved a 15% ROE for at least 10 consecutive years. Jensen has crossed off Netflix and Zoom from their list due to concerns about their long-term competitive advantage. Instead, they highlight companies like Broadridge and Marsh McLennan that have demonstrated enduring competitive advantages. Jensen missed out on Nvidia's stellar returns but believes in the resilience of companies that meet their investment criteria.