Their analysis really has four parts. First, they determine whether a potential holding is a good, profitable business. Third, they assess the management. It's important, he says, that the earnings or cash flow generated by a business exceed the interest generated by a risk-free Treasury bond. There are not that many businesses I'm willing to make that bet on.
Financial firms are always prominent in Selected.
We love this company because of its powerful global brand, and it's run by good people. Many value investors reject technology stocks not just because of their prices but because they argue that they're too hard to understand. But Davis begs to differ. With their common-sense approach to stock picking, Selected American's managers have served shareholders well over the years. The Kiplinger Washington Editors, Inc.