The folloing article on Warren Buffett's stock selection process is interesting - in your expert opinion, can we be "virtually certain" UTEK will be "materially higher" 5 or 10 years from now? From reading all the analyst reports, it appears may of them think so:
Copyright 1997 The Financial Times Limited
Financial Times
March 22, 1997, Saturday LONDON EDITION 1
In search of unicorns:Serious Money:
Gillian O'Connor, personal finance editor:
It is difficult to teach a new dog old tricks. But each year, Warren Buffett, the world's
best-known investor, tries to do just that. His annual statements to shareholders of
Berkshire Hathaway are an investment textbook, produced in instalments. . . .
If . . . you choose to construct a portfolio of individual shares, he has some deceptively
simple-sounding suggestions on how to go about it. Forget betas, efficient markets,
modern portfolio theory, option pricing and emerging markets. All you need is "the
ability to correctly evaluate selected businesses...you only have to be able to evaluate
companies within your circle of competence. The size of the circle is not very
important; knowing its boundaries, however, is vital".
Sounds easy enough. But not when you note what he means by "correctly evaluate".
Your goal is "to purchase, at a rational price, a part interest in an easily understandable
business whose earnings are virtually certain to be materially higher five, 10 and 20
years from now." . . . . |
