Tuesday December 11, 2007
Congratulations to Charles Mizrahi on his new book, Getting Started in Value Investing. In his Hidden Values Alert, he offers a list of 11 stocks screens for Bufffett's value criteria.
"What is Warren Buffett buying now? This is a question that investors ask each quarter. However, in Buffett’s letter to shareholders some time ago, he actually told investors his criteria by outlining the goals an investor should have.
"Buffett said, 'Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five,ten and twenty years from now.'
"I ran a screen based on companies that have had consistent and predictable earnings over the past 10 years. These companies also have little to no debt and are selling at attractive or,as Buffett calls them,rational prices.
"The 11 stocks that did pass (out of a universe of 8,000 stocks) should reward investors over time.Don’t take this list and buy every stock. Rather,use the list as a starting point for research.
Urban Outfitters (NASDAQ: URBN)
Techne Corporation (NASDAQ: TECH)
Chico's FAS (NYSE: CHS)
Genlyte Group (NASDAQ: GLYT)
Wolverine WorldWide (NASDAQ: WWW)
Applied Industrial Technologies (ASE: AIT)
Harte-Hanks (NYSE: HHS)
Healthcare Services Group (NASDAQ: HCSG)
MTS Systems (NASDAQ: MTSC)
Raven Industries (NASDAQ: RAVN)
K-Swiss (NASDAQ: KSWS)
