Berkshire Hathaway Inc (BRK.B)

[gfp927z]

The only one I would disagree with is 'Charting is worthless'. Even if you don't trade or try to time the market, the long term chart is extremely important because it quickly and accurately reveals - 1) the nature of the company's business, and 2) the quality of it's management.

Buffett has the ability to do an ultra deep analysis of a company by poring over every aspect in extreme detail, and the ability and experience to understand it all and thus find good values.

Not having Buffett's abilities, the 10 year chart is my abbreviated stock screening tool, and is the single most important piece of information to have in my system. The goal is to avoid trading and own only buy/hold type companies, and that means that all cyclical stocks are out. These are quickly identified by their volatile long term charts, and you'll also know them from the sector they're in, like autos, steel, etc. You also have to eliminate all erratic or poor performing stocks, and the 10 year chart identifies those in seconds.

Buy/hold means you want growth stocks, and ideally the chart should be steady enough to keep you from pulling your hair out. For me the 10 year chart has to have a nice steady incline, not too steep not too shallow. Once you find a chart like this, it's almost guaranteed the company is well managed and in a steady profitable business because that's the only way it could produce a 10 year chart like that.

Then all you have to do is check the PE, debt level, etc, and you've got your stock, or at least one good enough to be in a diversified custom ETF with 30 other growth stocks. Not being an analytical ubermensch like Buffett, I cheat and use a shortcut, the 10 year chart :o)