Tuesday, February 5, 2008

Business Week: What Would Buffett Buy Now?

Good article in Business Week on a stock screen using Buffett like criteria.
The stock of Buffett's company, Berkshire Hathaway (BRKA), topped the broader market in 2007 and 2006 after underperforming for a few years. Longtime Berkshire holders are sitting on impressive gains. Berkshire's book value per share has grown at a compounded annual rate of more than 20% over the past 40 calendar years. If you had invested $10,000 in Berkshire in January, 1968 (the shares closed at $20.50 on the last trading day of that month), your holding would be worth more than $50 million today.
Sixty names emerged when the screen was completed.

2 comments:

Anonymous said...

So, are you going to invest in any of these?

BBL Jr said...

With all the caveats about not giving investment advice I will say I have been watching SLB Schlumberger closely intending to purchase on one of these big down days. I have not yet take a very hard look at the stocks individually yet. I am encouraged that a number of these companies pay decent dividends that compete with low treasury yields and will grow over time.