As described by Warren Buffett on the performance of the great businesses over time, the return on equity is one of the important figures as well as indicators for great investment opportunities in the long run. On the search for them, I personally thought that if a certain business has a record of increasing their revenues over time, improving profitability over time, including impressive double-digit return on equity, and consistent growing cash positions, it would fit nicely in a basket of long-term investment opportunities.
One of the stocks which meets all these criteria is called Hittite Microwave Corporation (HITT), the company involved in designing and developing high-performance integrated circuits, modules, subsystems and instrumentation for technically demanding radio frequency microwave and millimeter wave application. The business is supported strongly by the global demand for mobile communication services and for real-time access to diverse type of data. The systems could be integral to wireless networks such as cellular telephone, fixed wireless and satellite communication systems, as well as wired networks such as cable TV, broadband access and optical data networks. Continue Reading »