My Watch List – August 26, 2010

Today, I am inaugurating a new feature on the blog that I hope you will find useful. Each week, I plan to go through the most recent issue of Value Line and update the watch list. The list is not limited to cheap stocks, but will track a large number of stocks of high-quality businesses and special situations in hopes that, at some point, Mr. Market will make them available at mouth watering prices.

Generally stocks will fall into one of the following categories. The categories may be added to or evolve over time.

  1. Good Business – a track record of high return on equity – generally > 18-20% – over the past decade
  2. Special Situation Рrestructuring, spin-off, bankruptcy, divestitures, etc.
  3. Book Value Aristocrat – exceptional book value growth over the past decade
  4. Strong Moat – evident durable competitive advantage
  5. Guru Purchase – recent purchase by a notable investor

Here is My Watch List for August 26, 2010

Please note that if the idea type for a given investment does not include a given category, for example “Strong Moat”, it does not mean that, in my judgment, the business does not possess that attribute, but rather that it was simply categorized under a different category, for example “Good Business”.

If a stock is included in The Value Line Investment I have included the issue of Value Line where you find it so you can research the stock. Many prominent investors such as Buffett, Munger and Li Lu recommend using Value Line. I use it on a weekly, if not daily, basis.

Also, where available, I have included a link to each stock’s ownership as listed on gurufocus.com, which tracks the publicly disclosed investments of numerous prominent investors.

Finally, you will see a column entitled “Other”. If I come across an interesting link for a given stock, I will try to post it there.

Please tell me what you think about this tool. I also welcome your suggestions on how to make it more useful.

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2 thoughts on “My Watch List – August 26, 2010

  1. adib

    Hi Greg,
    This is an excellent addition to your blog. I look forward to your weekly updates. I notice you used the watchlist spreadsheet that I shared with readers of my blog. Looks good. There is a limit of 1000 Google Finance functions per sheet. Just something to keep in mind as your list grows, you may hit that.

    There is a good weekly podcast that picks 3 ideas from each weeks Value Line. The podcast is available on iTunes or on the website http://www.thevalueguys.com

    Cheers
    Adib

    Reply
  2. Matt

    I’d put Apple on the watch list as well. Excellent balance sheet, several diversified market-leading product lines, strong brand, strong sales and revenue growth, a reasonable moat (the OS/software) and a history of innovation.

    Reply

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