What Would Buffett Buy?

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What Would Buffett Buy?
S&P's latest screen tracking the Berkshire bigwig's investing criteria uncovers 60 attractive names

With Hagstrom's book as a source, Standard & Poor's Portfolio Services analyst David Braverman put together a stock screen that picks companies using criteria similar to those that fit the legendary investor's growth-oriented style.

The full criteria for this screen:

1. Owner earnings (cash flow less capital expenditures) above $50 million (changed in February, 2006, from $20 million)

2. Net margins of at least 15% for the trailing 12 months

3. Return on equity of at least 15% the previous quarter and in every year for the last three years

4. Retained earnings that have grown less than the market capitalization, on an absolute basis, in the last five years

5. Looking five years into the future, projected cash flow per share greater than the current market price for each stock (discounted to the present using the 30-year Treasury yield); this helps remove overpriced stocks from the list

6. Market capitalization of $500 million or more

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http://www.businessweek.com/investor/co ... 505818.htm

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http://www.businessweek.com/investor/co ... 349429.htm

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http://www.businessweek.com/investor/co ... 956566.htm

Here are the 60 names that emerged when the screen was completed:

3M (MMM)
Alcon (ACL)
Altera (ALTR)
Altria Group (MO)
Aluminum Corp. of China (ACH)
America Movil (AMX)
Apollo Group (APOL)
Apple (AAPL)
Aracruz Celulose (ARA)
Autodesk (ADSK)
Bard (C.R.) (BCR)
Becton Dickinson (BDX)
BG Group (BRGYY)
British American Tobacco (BTI)
Brown-Forman (BFB)
China Mobile (CHL)
Cisco Systems (CSCO)
Coach (COH)
Coca-Cola (KO)
Diageo (DEO)
Equifax (EFX)
Franklin Resources (BEN)
Freeport-McMoRan Copper (FCX)
Garmin(GRMN)
GlaxoSmithKline (GSK)
Grupo Televisa (TV)
Infosys Technologies (INFY)
Intl. Game Technology (IGT)
Johnson & Johnson (JNJ)
Microsoft (1 2 Next Page

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http://www.cnbc.com/id/22130601/

hese are the publicly-traded U.S. stocks owned by Warren Buffett's holding company Berkshire Hathaway or its subsidiaries, as reported to the Securities and Exchange Commission in filings made available to the public.

[Paul Octopus]

[quote="imerlot"]What Would Buffett Buy?
S&P's latest screen tracking the Berkshire bigwig's investing criteria uncovers 60 attractive names

With Hagstrom's book as a source, Standard & Poor's Portfolio Services analyst David Braverman put together a stock screen that picks companies using criteria similar to those that fit the legendary investor's growth-oriented style.

The full criteria for this screen:

1. Owner earnings (cash flow less capital expenditures) above $50 million (changed in February, 2006, from $20 million)

2. Net margins of at least 15% for the trailing 12 months

3. Return on equity of at least 15% the previous quarter and in every year for the last three years

4. Retained earnings that have grown less than the market capitalization, on an absolute basis, in the last five years

5. Looking five years into the future, projected cash flow per share greater than the current market price for each stock (discounted to the present using the 30-year Treasury yield); this helps remove overpriced stocks from the list

6. Market capitalization of $500 million or more

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[url]http://www.businessweek.com/investor/co ... 505818.htm[/url][/quote]


The criterions are truely value, direct and pracmatic!
Thanks for sharing krab.