Buffett Munger Best Bargains Newsletter


Current Issue:

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 Dec,2016 - Download

Issue Archive:

  • Dec,2016 As we close out 2016, we also announce the final edition of the Buffett + Munger Bargain Newsletter. The Newsletter will be discontinued due to a lack of readership interest. In this final edition, the Newsletter deals with the problem of when to sell (and when not to sell). Specifically this issue discusses when to sell some of the best ideas put forward in previous editions of the Newsletter.
  • Nov,2016 This month's Newsletter is about a company that both Warren Buffet and Charlie Munger have invested in. Various issues obscure the true earnings power of the business causing the company to trade at less than 6x a conservative estimate of sustainable owner earnings.
  • Oct,2016 This month's Newsletter is about a company that is easy to understand in an industry Warren Buffet loves. It has been consistently profitable for many decades and grows steadily. Management maintains a very conservative balance sheet (no debt). The company trades at a large discount to the market value of its assets.
  • Sep,2016 According to Warren Buffett, the low-cost producer of something that people need is a good business. This month's Newsletter is about such a company. Importantly, the shares are cheap and the company has a modest market share leaving lots of room to grow profitably.
  • Aug,2016 Once again the Newsletter discusses a stock that is the precise opposite of a value trap. The stock never appears to be cheap by the usual metrics. However, in true Buffett style, it becomes a bargain in hindsight. This profitable growth is driven by a sustainable, high return on capital. The business is easy to understand with obvious and sustainable barriers to entry.
  • Jul,2016 This month's Newsletter is about a stock that regularly pops up on the Buffett-Munger stock screener. The company has dominated its industry for more than a century. Current management has been able to grow the business at double-digit rates while still generating enough excess cash to reduce its share-count. The stock is never obviously cheap but true Buffett style, it becomes a bargain in hindsight. This is driven by a sustainable, high return on capital.
  • Jun,2016 This month's pick is about a company that is easy to understand. The company is from France and has dominated its industry for more than a century. Even so it has a relatively small market share of less than 15% leaving room to grow. Current management has been able to grow the per-share owner earnings at a double-digit rate and appears to be investing heavily for future growth. The company has a rock-solid balance sheet and a reasonable P/E ratio of 14.
  • May,2016 This month's newsletter is about a stock that is trading at a 50% discount to a pessimistic estimate of the liquidation value of its assets. Perhaps surprisingly, the company is quite profitable and management is buying back stock very aggressively. In 2015 the company bought back 16% of its shares and this year they plan to buy back even more.
  • Apr,2016
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  • Feb,2016 February: Warren Buffett is on record saying that the company discussed in this months' newsletter is very very special. Buffett also holds its management in high regard. Nevertheless, the stock trades at just 10x earnings. This is truly a wonderful and well-managed company at a reasonable price.
  • Jan,2016
  • Dec,2015 This month's newsletter is about a stock Buffett has said will perform very well. Berkshire was forced to sell the stock to avoid anti-trust issues. In ten years, the company has doubled its revenue and increased its per-share earnings five-fold. An analysis of the fundamentals shows there is no reason they couldn't do it again. This great company can be bought at a P/E of 13.
  • Nov,2015 Warren Buffett has often discussed the \"Toll Bridge\" as an exceptional type of businesses. A \"Toll Bridge\" is something that people or businesses have to use to get where they are going because it furnishes access to an essential service. This month's newsletter is about such a company. The company has invested heavily to create an infrastructure to serve its customers needs for decades to come. Crucially, there doesn't seem to be a viable alternative within the niche market it serves.
  • Oct,2015 According to Charlie Munger, there are businesses, that you will find a few times in a lifetime, where any manager could raise the return just by raising prices—and yet they haven't done it. This month's newsletter is about such a company.
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    • This newsletter will seek to find companies that have favorable long term prospects based on what Buffett and Munger "MIGHT" look for. By no means are we trying to replicate their current holdings nor are we trying to predict what they may buy next. We simply want to try to preemptively find those companies that Buffett and Munger could be buying right now.

    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.

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