In the wake of Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) and 3G Capital’s purchase of Kraft (KRFT, Financial), Barron’s searched for investing websites with insights into Buffett and company’s strategy, and highlighted GuruFocus as a site to follow for extensive Warren Buffett (Trades, Portfolio) coverage.
In the April 11 article, Barron’s refers to the Buffett-Munger newsletter pick of Precision Castparts (PCP, Financial) as one that makes more sense than the Kraft purchase, a company that looks expensive to most investors. Though Precision Castparts may also seem expensive, it is a bargain in hindsight, says newsletter editor Francis van den Broek. GuruFocus founder Charlie Tian was also quoted on his reasoning for the Kraft acquisition.
“This purchase is mainly driven by 3G Capital,” Tian said. ““Berkshire invests in management, and 3G is an extremely efficient operator.”
The Buffett-Munger Bargain Newsletter profiles two companies each month that have favorable long-term prospects based on what Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) usually look for in stocks. Using the Buffett-Munger Screener, GuruFocus looks for companies that have at least 10 years of profit and book value growth, high returns on both equity and total capital, are priced with the highest current rate of return, and have a favorable outlook.
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