In this month's Buffet-Munger newsletter we provide a buy recommendation and analysis on a longtime favorite of Warren Buffett and Bill Gates. While the company has stumbled recently, we believe management is executing a turnaround plan and the company is poised to recover its leadership in the discount store space. This retailer's stock is on sale. The company trades at less than 11 times next year's earnings estimates.
Download July Buffett-Munger Best Bargains Newsletter: the 12-Page Report
GuruFocus also hosts a Buffett-Munger screener that can be used to find companies with high quality business at undervalued or fair-valued prices:
- Companies that have High Predictability Rank, that is, companies that can consistently grow revenue and earnings.
- Companies that have competitive advantages, that can maintain or even expand profit margins while growing business
- Companies that incur little debt while growing business
- Companies that are fair valued or undervalued. We use PEPG as an indicator. PEPG is the P/E ratio divided by the average growth rate of EBITDA over the past five years.
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