4 Stocks For Buffett: 4 Names With High Return On Equity

Return on equity (ROE) is the one number that Warren Buffet has said that you can not fake. You either have it, or you do not. A higher return on equity means the company is able to leverage its dollars into a return on the investment it is making, and continue to build the business. The stock price will take care of itself over the long run, but if a company can consistently generate high ROE's, than this is a business, and ultimately a stock, that you want to be a part of. Here is a list of four stocks that have been able to generate return on equities of at least 25%, and have been able to sustain this growth rate for a number of years. Bridgepoint Education, Inc.

is one of the more impressive names, as it has a return on equity approaching 67%, which is incredible. Bridgepoint, which was recently featured at the

is growing its revenues at 30%, has gross margins at 74%, 31% of its market capitalization is net cash, and the buyback the company is doing is 22% of the float. The company has been the subject of much scrutiny recently, and was the recent subject of a Senate hearing. There have been notable bears in the name, such as Steve Eisman, and Senator Tom Harkin. Shares trade at less than 10 times forward earnings, and the company has had a nice run since it was mentioned at Ira Sohn. With 73% of the actual float being held short, it looks as if this name is ready for a short squeeze. Hansen Natural Corporation

is another stock that has a high return on equity, at 31.49%. Shares trade at 22 times forward earnings, which is in line with the company's seven year average of 24 times forward earnings. The company has been growing revenues at 49.7% year over year, and earnings are growing at 69% year over year. Questcor Pharmaceuticals

has a return on equity of 46.5%, and the company is growing tremendously. Questcor Pharmaceuticals, which provides prescription drugs for central nervous system and inflammatory disorders, is growing its revenues at 40% year over year, and earnings are growing at nearly 43%. The stock trades at 19 times forward earnings. MasterCard Incorporated

is the last name to consider. Mastercard shares were hit hard yesterday, down some 3% after the Senate rejected an amendment to delay the debit swipe card fee, but this should not impact the company too much. The company has a 42% return on equity and has a tremendous business, as it is a toll both company that Buffett and others love so much. Shares are currently trading at 13.5 times next year's earnings, and as the growth of the mobile wallet continues to take place, you can bet Mastercard will sure be there.