BALTIMORE (Stockpickr) -- Warren Buffett's got a secret. It's a value investing metric that too many investors ignore today -- and it's spitting out a handful of stocks right now that are worth buying.
The metric? It's book value growth. Sure, plenty of investors look at book value stats (book value per share and price-to-book are the two most popular), but most use it to measure a company's book value at a specific point in time: now. Instead, looking at how book value changes over time can tip investors off to firms that are creating the most real fundamental value for shareholders, no matter what's going on in the stock market.
Book value growth is a metric that's highly thought of by legendary value investors such as Buffett and Ben Graham -- and it's a stat that Buffett's own Berkshire Hathaway (BRK.B) has embodied. The firm has generated annualized book value growth of 19.8% since 1965, besting the S&P 500 by more than double.Of course we're not looking at book value growth per share in a vacuum. Other factors favored by Buffett, such as a bargain price-to-earnings ratio, and tenable sales trajectory factored into these names as well. >>5 Cash-Rich Companies to Buy This Fall With that, here's a look at five other stocks that fit that book value growth mold.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV