I have been thinking of what stocks or companies Warren
Buffett would pick or invest in. What I mean about this is that, if he’s to
invest on the Ghanaian stock market, what would be his choice knowing what he
stands for and his style of investing.
Warren Buffett is popularly referred to as the greatest
investor and his investment strategy or philosophy is highly and widely seen as superior. Buffett’s investment philosophy comes from Benjamin Graham school of
value investing. An article published by Investopedia reveals that, value
investors look for securities with prices that are unjustifiably low based on
their intrinsic worth.
With this mindset, I have been thinking what Buffett would pick on the local bourse. Warren and many value investors are not supporters of the efficient market hypothesis (a theory that states, it is impossible to “beat the market”). But they do trust that the market will eventually start to favor those quality stocks that were for a time undervalued.
With this mindset, I have been thinking what Buffett would pick on the local bourse. Warren and many value investors are not supporters of the efficient market hypothesis (a theory that states, it is impossible to “beat the market”). But they do trust that the market will eventually start to favor those quality stocks that were for a time undervalued.
After putting a question on my Facebook page, I got some
wonderful opinions and I would like to share that. The Ghanaian market, though
inefficient has some great companies that might be undervalued. Others in my
view are overpriced and by the use of the Warren Buffett philosophy, they would
soon fall to attain their right values.
The following are the views of some of my friends on
Facebook and their reasons for their choice of stocks or companies;
Click to enlarge:
Click to enlarge:
In my view, Fan Milk Ltd (FML) has over the years maintained strong financials, the price is low (arguable) hence would be the first choice for Warren Buffett on the Ghanaian bourse. Stocks like TOTAL Petroleum and Standard Chartered Bank (SCB) also have strong financials hence would be other choices.
What do you think? What are your Buffett-Picks from the Ghanaian market? And Why? I hope to read your comments.



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