GuruFocus publishes a monthly Buffett-Munger Bargain Newsletter in which we analyze and recommend the stocks that younger Buffett and Munger would like. These are high quality companies and traded at bargain prices.
March’s pick has been profitable for 25 straight years. It has grown sales by almost 20% a year for the last 33 years. This “pixie dust” business sells a low cost product that makes a very high cost investment much more profitable. Giving the company pricing power – and a 26% operating margin.
This month’s pick:
But the main attraction of this stock is its pricing power:
This company has a very strong market position:
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price….when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements.”
- Warren Buffett (1989)
What’s a Buffett/Munger Bargain?
A Buffett/Munger Bargain is a “wonderful company” selling at a “fair price”. To be a wonderful company a stock must pass Warren Buffett’s checklist:
1. Simple Business
2. Favorable Long-Term Prospects
3. Able and Honest Management
4. Consistent Earnings
5. Good Return on Equity
6. Little Debt
7. Very Attractive Price
What’s the Buffett/Munger Bargain Newsletter?
GuruFocus’s Buffett/Munger Bargain Newsletter is written by Geoff Gannon. It picks one new “wonderful company” selling at a “fair price” every month. The pick is made using GuruFocus’s Buffett/Munger Screener and Warren Buffett’s 7-point checklist. A new issue goes out to subscribers on the third Friday of every month.
So, get your copy of the Buffett/Munger Bargain Newsletter today.
If you are not aware, we also publish a monthly Ben Graham Net Current Asset Bargains Newsletter on the first of each month. (Download), and Micro-Cap Magic Formula Newsletter (Download), all three monthly newsletters are included in the subscription of Premium Membership.
March's pick has shown profits in 9 of the last 10 years. Its highest quality assets – cash, receivables, inventory, land, and buildings – minus all liabilities cover the stock's price 2 to 1. That's a 50% margin of safety. And 100% upside. Download March issue of Ben Graham Net-Current Asset Bargains newsletter.
March’s magic formula newsletter pick has more than tripled their revenues over the past five years, and they're forecasting revenue growth over 30% this year. Despite that, the company trades for under 10x trailing earnings, and their earnings are actually significantly depressed by an investment management is making that they're forecasting 25% IRR for.. Download March 2012 Issue of Micro-Cap Magic Formula Newsletter.
The model portfolio of Buffett-Munger screener has outperformed the market every year since inception in Jan. 2009.
These features are for Premium Members only. If you are not a premium member, we invite you for a 7-day Free Trial.
March’s pick has been profitable for 25 straight years. It has grown sales by almost 20% a year for the last 33 years. This “pixie dust” business sells a low cost product that makes a very high cost investment much more profitable. Giving the company pricing power – and a 26% operating margin.
This month’s pick:
- Has been profitable for 25 straight years
- Has raised its dividend every year for the last 11 years
- Grew earnings 17% a year over the last 10 years
- Grew sales almost 20% a year over the last 30 years
But the main attraction of this stock is its pricing power:
- 10-Year average operating margin is 26%
- 10-Year average return on equity is over 16% – with no leverage
This company has a very strong market position:
- Product category has quadrupled in use versus alternatives over the last 20 years.
- Company is the world’s leading supplier of its product. And has:
- Sales volume lead
- Quality lead
- Technology lead
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price….when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements.”
- Warren Buffett (1989)
What’s a Buffett/Munger Bargain?
A Buffett/Munger Bargain is a “wonderful company” selling at a “fair price”. To be a wonderful company a stock must pass Warren Buffett’s checklist:
1. Simple Business
2. Favorable Long-Term Prospects
3. Able and Honest Management
4. Consistent Earnings
5. Good Return on Equity
6. Little Debt
7. Very Attractive Price
What’s the Buffett/Munger Bargain Newsletter?
GuruFocus’s Buffett/Munger Bargain Newsletter is written by Geoff Gannon. It picks one new “wonderful company” selling at a “fair price” every month. The pick is made using GuruFocus’s Buffett/Munger Screener and Warren Buffett’s 7-point checklist. A new issue goes out to subscribers on the third Friday of every month.
So, get your copy of the Buffett/Munger Bargain Newsletter today.
If you are not aware, we also publish a monthly Ben Graham Net Current Asset Bargains Newsletter on the first of each month. (Download), and Micro-Cap Magic Formula Newsletter (Download), all three monthly newsletters are included in the subscription of Premium Membership.
March's pick has shown profits in 9 of the last 10 years. Its highest quality assets – cash, receivables, inventory, land, and buildings – minus all liabilities cover the stock's price 2 to 1. That's a 50% margin of safety. And 100% upside. Download March issue of Ben Graham Net-Current Asset Bargains newsletter.
March’s magic formula newsletter pick has more than tripled their revenues over the past five years, and they're forecasting revenue growth over 30% this year. Despite that, the company trades for under 10x trailing earnings, and their earnings are actually significantly depressed by an investment management is making that they're forecasting 25% IRR for.. Download March 2012 Issue of Micro-Cap Magic Formula Newsletter.
The model portfolio of Buffett-Munger screener has outperformed the market every year since inception in Jan. 2009.
These features are for Premium Members only. If you are not a premium member, we invite you for a 7-day Free Trial.
