Warren Buffett, Who is this guy????
He
is world’s greatest stock investor and comes under top 3 richest people. Businessman
and investor Warren Buffett was born on August 30, 1930, in Omaha, Nebraska.
Investing by age 11, Buffett was running a small business at 13. Buffett later
started the firm Buffett Partnership in Omaha, with huge success. In 2006,
Buffett announced that he would give his entire fortune away to charity (est.
$62 bil.), the largest act of charitable giving in United States history.
So
Buffet is going to invest in India Stock market!!!! A lot of enthusiastic. If
Buffet is buying those stocks so we will also buy the same J J J
Next
question you may have, when Buffet is going to invest????
Yes,
Every time he is investing …. He has shared his principles, if we follow them then
we can ……
In case Buffet will come and start buying stocks from NSE ,what would be those stocks he
will buy …..
Before
that I need to make a gist of Buffet Investing principles as below:
1.
EPS should have
consistently risen in the past 10 years with no negative EPS any year
2.
Long Term debt in the
current year should be less than or equals to 5 times its earnings.
3.
10 year average return
on equity(ROE) should be at least 15%
4.
10 year average return
on total capital(ROCE) should be at least 12 %
5.
Free Cash flow in the
current year should be more than zero.
6.
Return on retained
earnings should be higher than or equals to 12 %
7.
Top Management and
understandable business (depends on individual)
Note: For my calculation I have
taken only 5 years calculation instead of 10 years .But it is advisable to
consider 10 year data
Company
|
Does EPS consistently
increased for last 5 years?
|
Long term debt for
current year
|
current year earning
|
5 yr AVG ROE
|
5 yr AVG ROCE
|
Is Free cash flow for
current year is greater than 0??
|
Return on retained
earning
|
Management Quality
|
TCS
|
Yes
|
11000 Crore
|
64672.93 Crore
|
37.14
|
46.76
|
Yes
|
67
|
Excellent
|
ITC
|
Yes
|
3545.5 crore
|
34474.15 Crore
|
34
|
47.05
|
Yes
|
47
|
Excellent
|
Infosys
|
Yes
|
0
|
44341 Crore
|
25.7
|
34.9
|
Yes
|
65
|
Excellent
|
Here
I have taken all the data from different websites as well as company website.
All the data are as of 31-March-2014.The above stocks pass Buffet filter
criteria.
I
am a die heart fan of Mr. Buffet!!!!
So
guys here I have just calculated and gave 3 stocks from NSE but I am sure there
are a lot of stocks.
And
Friends, Buffett holds the stock for long time ……
What
are your Warren Buffett Stock and how long you can hold those in your portfolio????
Disclaimer:
This is not a buy or sells recommendation. Just my thought from educational
point of view. I may hold few of these stocks and there might be a chance of biased
opinion from my side. Please do your analysis before investing.
Thanks for sharing valuable information....:)
ReplyDeleteThank you very much Sonu :)
DeleteThanks abinash for sharing in fb
ReplyDeleteyou are most welcome Suman !
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