This month's Newsletter is about a company that both Warren Buffet and Charlie Munger (Trades, Portfolio) have invested in. Various issues obscure the true earnings power of the business causing the company to trade at less than 6x a conservative estimate of sustainable owner earnings.
Get your copy of GuruFocus’s Buffett-Munger Bargain Newsletter now
Each month the Newsletter presents a company that has generated satisfactory results for decades. The drivers of past success are analyzed in order to determine if they are still relevant and therefore likely to drive future profitable growth. Though these stocks are expected to generate satisfactory results over the long-run, they are not neccessarily cheap.
As of this month, the companies that trade at:
A price to owner earnings multiple of less than 6x
or
A 50% discount to the fair value of the assets, net of debt
will be presented in a separate portfolio. This is a highly-concentrated portfolio of stocks that meet both the qualitative criteria as well as strict quantitative criteria. This portfolio is expected to generate index-beating returns within a reasonable timeframe.
“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 (Trades, Portfolio) (1989)
Can’t wait to know this stock’s name?
Get your copy of GuruFocus’s Buffett-Munger Bargain Newsletter now
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 (Trades, Portfolio)’s 7-point 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 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 (Trades, Portfolio)’s 7-point checklist. A new issue goes out to subscribers on the third Friday of every month.
Get your copy of GuruFocus’s Buffett-Munger Bargain Newsletter now
All the monthly newsletters are included in GuruFocus Premium Membership. If you are not a Premium Member, we invite you for a 7-day Free Trial.
