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Why did Buffett add this stock to his portfolio?

Posted on Wed Jan 5 2022, 4:40
Grufity
Buffett rarely adds a stock to Berkshire's portfolio. He added an interesting stock last quarter.

This stock earned the rare distinction of surviving Warren Buffett's due diligence.

It is a rare occasion when Warren Buffett adds any new stock to his portfolio (check Berkshire's portfolio). Typically, such a stock needs to fit several criteria including the following:

  • Long trend of Revenue Growth
  • High Return of Equity
  • Largely consumer related

Berkshire initiated $100 Million of this stock in the last quarter.

Below are some important metrics of this stock:

Metric Value
Market Cap $13+ Billion
Price/Earnings 47
Price/Sales 4.4
Return on Equity 24%
Revenue (TTM) $3 Billion
Revenue Growth 45%
Earnings $285 Million
Earnings Growth 95%

With ROE of 24% this is a great stock to add to your portfolio. Grufity's Fair Value model values the stock 50% higher than it's current stock price.

So, what is this stock? Here's a 360 degree view on it.