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

To: Sergio H who wrote (3600)	3/2/2014 3:26:48 AM
From: bruwin	Respond to of 4719

Yes, you're correct, the percentage ratio targets in that spreadsheet are what Buffett uses in his attempt to uncover companies that have "Durable Competitive Advantage". No doubt CHMT doesn't fall into that category. The other ratios are what I've used over the years to interrogate the business performance of a company. The reason I've often used that spreadsheet is because I can quickly download 5 years worth of a company's Annual Result's data into it and EXCEL does the rest. Takes a minute or two. From that one can get an idea of a company's weak points and strong points. For me those are 'markers' within an 'industrial type' company's financial statements, especially its Income Statement, which portray its recent business performance. No doubt there may be other factors that are "brewing" within a company, its business or its market, that could very well turn things around in the future and may not be apparent in its recent historical financials. But if that's the case, then, by keeping an eye on its future financial results, one should be able to see improvements coming through and that should add to one's confidence in investing in the company. I'd say that even if a company only managed, say, 70% to 80% of those percentage target ratios, SIMULTANEOUSLY, it would very likely be doing well in its business activities.