The Globe and Mail reports in its Thursday, Sept. 3, edition that the S&P/TSX composite
has been extremely volatile, making Warren Buffett's emphasis on steady,
dependable growth and
attractive valuations levels an
approach likely to uncover
investment opportunities. The Globe's Scott Barlow writes that Mr. Buffett loves reliability
above all things. The Berkshire
Hathaway portfolio is dominated
not by the fastest-growing
companies, but those capable of
generating annual growth
through any market or economic
environment.
With this in mind, Mr. Milstead's stock
screen begins by ranking all
non-financial TSX 60 constituents
according to consistency
of growth. The 10-year
standard deviation of cash-flow
growth was used -- cash flow is
more resistant to accounting
shenanigans than net income. There were some surprises
among the TSX 60 stocks representing
the most consistent
cash-flow growth, highlighted by
Canadian Natural Resources. Other stocks on
the list were less of a shock --
TransCanada and Telus are at the top of the list,
and Inter Pipeline and Rogers
Communications are
also in the top 10.
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