"We ran a screen two months ago, and again a week ago, we said we want companies that have return on equity over 14%. You're familiar with us, that's where we start, we want a PE well below the ROE, that just gives us a good value and we want revenue growth of 10% or more over the last year. We screened 6,000 stocks. Usually when you screen 6,000 stocks, you find a lot of little stuff that has been overlooked. Two-thirds of the names that came through those screens are in the S&P 500. We're finding more value today in the big stuff than we are in the little stuff. Now the momentum continues on the little stuff. Incidentally, in 1998, the only values we were finding were small stuff. And for a long time we were viewed as a small cap manager, and we don't care cap. We care about value." "We haven't yet bought a Wal-Mart, but they’re starting to look interesting. In the last year and a half we have bought a Johnson & Johnson and a Pfizer, we own a Citigroup, Eliot Spitzer gave us a chance to buy AIG at a reasonable price."
To read further:
http://www.wealthtrack.com/transcript_02-24-2006.php
Thank you GuruFocus for the wonderful link.
All the best,
Dah Hui Lau (David)
dahhuilaudavid@gmail.com
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