The '25-25-25' wealth formula

Finding worthy investments amid endless market noise, data points, and analyst chatter can be overwhelming. That's where Motilal Oswal Chairman Raamdeo Agrawal's '25-25-25' rule comes in handy. Simply look for companies with a return on capital employed (ROCE) of 25 per cent, profit growth of 25 per cent, and a P/E ratio under 25. What does that give you? A winning combination of efficiency, growth, and value. But does it really hold up? We put the rule to the test.