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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (2036)	7/24/2012 2:52:14 PM
From: E_K_S	Read Replies (2) \| Respond to of 4720

As always you are right Bruwin, I was using the quick and easy calculation provided in the Yahoo statistics. It is a good first screen because you would not know how many of the stocks I look at do not even pass that test. For me, this Buffet screen is really important now. If companies can not show a 3x or 4x Net annual Income to LT Debt now, when interest rates are near zero, just how will it look when interest rates revert back to normal levels (4-5% nominal rates). Companies should be generating huge cash flows and be paying down their LT Debt. I did notice that MSFT actually increased their LT Debt recently. I like companies to take the conservative route and pay down their debt especially if it expensive debt. I voted for your CL selection. They meet this Buffet test and should continue to do well even in a slow growth economy. EKS