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Jonathan Poland
Jonathan Poland
Articles (505)  | Author's Website |

Simpson and Buffett BOTH own this wide moat stock.

Precision Castparts (NYSE:PCP) was founded in Portland, Oregon circa 1949. The company manufactures structural investment castings, forged components and airfoil castings for aircraft jet engines and power turbines.

Despite having a website that looks straight out of 1999, doing the brand zero justice, the underlying company is rock solid. It has large customers like General Electric (NYSE:GE), Rolls-Royce (RR.), Airbus (NYSE:AIR) and Boeing (NYSE:BA) that have all bought from the company for decades.

Interestingly enough, Lou Simpson (Trades, Portfolio) (former Berkshire [BRK.B][BRK.B] CEO at Geico) has 9.75% of his portfolio in this stock. I

About the author:

Jonathan Poland
I spent more than 15 years helping DIY investors earn over 30% a year. Today, I help business leaders take those insights and build better assets. I rarely write about stocks that I own. Thanks for reading. Do your own analysis before investing.

Visit Jonathan Poland's Website

Rating: 3.0/5 (2 votes)



SerenityStocks - 5 years ago    Report SPAM

Benjamin Graham - also known as The Dean of Wall Street - was a scholar and financial analyst who mentored legendary investors such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

Warren Buffett once gave a speech at Columbia Business School explaining how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham's principles are everlasting. The speech is now known as "The Superinvestors of Graham-and-Doddsville".

Graham's first recommended strategy - for novice investors - was to invest in Index stocks.
For more serious investors, Graham recommended three different categories of stocks - Defensive, Enterprising and NCAV - and 17 qualitative and quantitative rules for identifying them.
For professional investors, Graham described various special situations or "workouts".

For example, given below are the actual Graham ratings for Precision Castparts Corp (PCP), with no adjustments other than those for inflation.

Defensive Graham investment requires that all ratings be 100% or more.
Enterprising Graham investment requires minimum ratings of - N/A, 75%, 90%, 50%, 5%, N/A and 137%.

Precision Castparts Corp (PCP) - Graham Ratings
Sales | Size (100% ? $500 Million): 2,020.00%
Current Assets

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