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5 Buffett-Munger Industrial Stocks From Around the Globe

Stocks to consider as the US opens its borders to vaccinated visitors

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Nov 08, 2021
Summary
  • U.S. opens its borders for vaccinated visitors.
  • Congress approves $1 trillion infrastructure bill.
  • Investors can find opportunities in industrial stocks meeting Buffett and Munger’s criteria.
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As investors welcome news regarding the U.S. opening its borders for vaccinated visitors and Congress approving a major infrastructure spending bill, five industrial stocks meeting Berkshire Hathaway Inc. (

BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s four-criterion investing approach as of Monday are Copart Inc. (CPRT, Financial), Canadian Pacific Railway Ltd. (CP, Financial), Griffon Corp. (GFF, Financial), Xingyi Glass Holdings Ltd. (HKSE:00868, Financial) and Kintetsu World Express Inc. (TSE:9375, Financial) according to the Buffett-Munger Screener, a Premium feature of GuruFocus.

Dow and S&P 500 hit records as U.S. opens borders and approves infrastructure spending bill

On Monday, the Dow Jones Industrial Average closed at 36,432.22, up 104.27 points from last Friday’s close of 36,327.95. The Dow hit a new intraday record of 36,565.73 earlier in the day.

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Likewise, the Standard & Poor’s 500 index closed above 4,700 for the first time in history despite increasing just 4.17 points from the previous close of 4,697.53.

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On Friday, the U.S. House of Representatives passed a $1 trillion infrastructure spending bill that includes funding for transportation, utility grids and broadband. The U.S. on Monday lifted its international travel ban, allowing vaccinated travelers to enter the U.S. with proof of vaccination and a negative Covid-19 test taken within three days of departure.

As such, investors may find opportunities in industrial stocks that meet Buffett and Munger’s four-criterion investing approach: understandable business, favorable growth prospects, shareholder-oriented management and attractive valuation. Key criteria include strong business predictability, high profit margins, low debt-to-asset growth rates and a low price-earnings-to-growth ratio.

Copart

Shares of Copart (

CPRT, Financial) traded around $153.11 with a price-earnings-to-growth ratio of approximately 1.79.

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GuruFocus ranks the Dallas-based vehicle auctioning company’s profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and an operating margin that has increased approximately 5.2% per year on average over the past five years and outperforms more than 96% of global competitors.

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Gurus with holdings in Copart include Pioneer Investments,

Steven Cohen (Trades, Portfolio)’s Point72 Asset Management and David Rolfe (Trades, Portfolio)’s Wedgewood Partners.

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Canadian Pacific

Shares of Canadian Pacific (

CP, Financial) traded around $76.89 with a price-earnings-to-growth ratio of approximately 1.71.

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GuruFocus ranks the Canadian transportation company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns that outperform more than 92% of global competitors.

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Griffon

Shares of Griffon (

GFF, Financial) traded around $27.81 with a price-earnings-to-growth ratio of approximately 1.10.

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GuruFocus ranks the New York-based garage door manufacturer’s profitability 7 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and a high Piotroski F-score of 8.

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Xingyi Glass Holdings

Shares of Xingyi Glass Holdings (

HKSE:00868, Financial) traded around 20.35 Hong Kong dollars ($2.61) with a price-earnings-to-growth ratio of 0.44.

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GuruFocus ranks the Hong Kong-based industrial glass company’s profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and an operating margin that has increased approximately 8.7% on average over the past five years and outperforms more than 96% of global competitors.

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Kintetsu World Express

Shares of Kintetsu World Express (

TSE:9375, Financial) traded around 2,716 yen ($23.99) with a price-earnings-to-growth ratio of 0.50.

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GuruFocus ranks the Japanese freight logistics company’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and an operating margin that has increased approximately 9.20% per year on average over the past five years.

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Disclosures

I am/we are Long CPRT, CP
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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