Selecting Good Companies (ROE, PB and PER)

[Musicwhiz]

A normal assumption goes like this.

If a company generated returns i.e ROE of >20% for last 10 years consistently and if all factors stay the same, then there is a high chance that it will do the same for the next 10 years.

It sound great and look great on paper. But can anyone start throwing out names that
1) has ROE of >20% CONSISTENTLY for 10 years
2) has ROE of >20% CONSISTENTLY for 20 years.

I have none.

I'd like to quote some examples of consistently high ROE without debt. It may not conform to 10 years worth of >20% ROE every year, but I am using averages here.

1) Kingsmen Creatives - Average ROE of 21.7% from FY 2003 to FY 2009 (7-years). ROE for 1H FY 2010 (annualized) is thus far 24.8%, on track for >20% again to add to the 8-year average of >20%.

2) SIA Engineering Co. Ltd - Average ROE of 22.5% from FY 2001 to FY 2010 (10 years). ROE for 1Q FY 2011 (annualized) was 21.1%, on track for >20% ROE to add to the 11-year average of >20%.

Of course, these are only two of the businesses I own which exhibit such characteristics; there may be many more others which I have yet to uncover, or perhaps it is fuelled by leverage? The above two examples are companies which have low debt (Kingsmen) or no debt (SIAEC).