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December Buffett-Munger Bargain Newsletter is Released

December 21, 2012

The Buffett-Munger Bargain Newsletter December issue is ready for download. This month's pick has quadrupled earnings each decade since its IPO almost forty years ago. Though the stock always appears to be expensive, it becomes a bargain in hindsight due to its sustained double digit earnings growth. With more cash than debt, this company has a steady 20% return on equity protected by insurmountable barriers to entry.

“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)

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’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’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.

Rating: 3.2/5 (6 votes)


Dr. Paul Price
Dr. Paul Price - 4 years ago    Report SPAM
You say the portfolio was 'rebalanced' last January.

What, exactly, does that mean?

I notice more than a few of this year's picks aren't reflected in your portfolio list. Why are they omitrted from tabulation of results? How do you account for repeat recommendations in computation of results?
Batbeer2 premium member - 4 years ago
Hi Paul,

There's a model portfolio and there is a screener. The screen changes constantly whereas the portfolio changes only in January.

The portfolio is here.

The screen is here.

In January, any stocks from the model portfolio that fail to make the top 25 of the screen are sold and replaced by stocks that do make the top 25 at that time.

The performance of the model portfolio speaks for itself. Each month, the newsletter highlights one stock that's either on the screen or in the portfolio. At least, that has been the case since I've been writing the newsletter.

Some picks (like Mettler-Toledo) were taken from the screen (as opposed to the model portfolio). This was explained in the very first sentence of the September newsletter. Mettler-Toledo isn't in the portfolio because it wasn't on the screen in January 2012.
Bill.Smith - 4 years ago    Report SPAM
GF/Batbeer: thought you might want to know, it looks like the first link points to the Oct newsletter instead of Dec.



Batbeer2 premium member - 4 years ago
@ Bill

Thanks for the heads-up! I can't fix it though.

Here's a link to the archive, including this month's pick.


It's fixed now

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