Much has been written about how Warren Buffett and the likes choose their stocks. They must use similar methods, as many of them have close portfolio's. So what is the common thread? Could it be as simple as fundamentals? Perhaps. If one were to analyze what holdings the guru's have, a pattern emerges. The 3 basic fundamentals (ROE, ROA, Net Profit) are of the most importance in selecting a company.
http://www.gurufocus.com/news.php?id=980
http://www.gurufocus.com/news.php?id=980