buffet

An overview of Warren Buffets top 15 investment holdings – Part 1

Buffet is known as a pioneer of the value investing approach to identify investment opportunities. This methodology involves reading through financial statements in order to identify cases where the market has mispriced stocks. Value investors actively seek out the stocks they believe the market has undervalued, and investors who use this strategy think the market may have overreacted to either good or bad news, which results in stock price movements that may not necessarily correspond to a company’s long-term fundamentals.

Validea’s Top Five Consumer Cyclical Stocks Based On Warren Buffett

You want to invest in a company that’s doing well, but must also be mindful of their stock price so that they fit your budget. If they’re too expensive, then no matter how lucrative they are, you can’t tag along because you can’t afford to. Validea has a rating system they’ve based on Warren Buffet’s legendary approach. Aside from debt and predictable earnings, other criteria include returns (initial, capital, equity, and expected), cash flow, resale value, and use of earnings. Companies that score 80% indicate good organisational strategy, while 90% or above is a solid buy. Let’s look at some companies that tick all the right boxes.