"I like to go for cinches. I like to shoot fish in a
barrel. But I like to do it after the water has run out."
-- Warren Buffett
History seems to show that
good investingdoesn't necessarily mean picking out
complex situations and basing your investment thesis on
Nobel-level math. In fact, as the current financial crisis
has shown us, too much complexity can often
end in calamity.
In an effort to track down some of the companies that may
fall into that "fish in a barrel" category, I've turned to
The
Motley Fool's CAPS community. Using CAPS' stock screener,
I looked for companies that have a price-to-earnings ratio
below 15, a long-term debt-to-equity ratio below 50%, a
return on equity above 10%, and a high rating from the CAPS
community.
Company
CAPS Rating
(out of 5)
Price-to-Earnings Ratio
Return on Equity
Long-Term
Debt-to-Equity Ratio
Nokia (NYSE: NOK)
****
10.2
28.1%
6%
UnitedHealth (NYSE: UNH)
*****
8.8
16.2%
50%
Petrobras (NYSE: PBR)
*****
10.3
30.5%
35% Continued... |