By taking the Buffett Munger Screen, GuruFocus will attempt to find the best stock that
(1) Have at least 10 years of
profit and book value growth
(2) Possess High Returns on both Equity and Total Capital
(3) Are priced with the highest current rate of return (yield)
(4) Have a favorable outlook going forward
Each month we will present up to 2 companies that we feel meet these criteria. These, in our opinion, will provide the very best opportunity for long-term growth.
Remember, that Warren Buffett and Charlie Munger have followed the Ben Graham theory on investing in companies using a "businesslike" approach with some distinct differences.
Namely, Buffett, with the help of Munger, now focuses on the long term prospects of the business extending beyond just the fundamentals into the brand and management of the business. A great brand can withstand poor management, but very seldom does it work in reverse. Therefore, this newsletter will look at the company's business model, history, management, and market in order to find the margin of safety and intrinsic value.
Also, since even good businesses can vanish if they lose their competitive advantage, this report will seek to find those companies that offer the highest current yield. Through this we feel the owner can earn the highest return with the least amount of risk.
Throughout the year, GuruFocus will present up to 2 companies that we feel meet this criteria each month to readers.Free 7-day Trial