SBUX - Starbucks
- Commodity prices squeeze margins
- Increased competition from MCD
- Stock price dropped all year. Now selling at Aug. 2005 levels
- Received several analyst downgrades
- Plans for first ever TV ad campaign revealed
- Fast Money warns of Value Trap
- What effect does a weak dollar have?
- Look for buying in the mid to late teens
KMX - CarMax
- This is Buffett's only new pick
- Is this a defensive pick? What is oil's effect?
- Markel has been a long-term holder
- Buffett buys at price close to $20.50
- Study released shows that individuals can beat market by copying Buffett
HD - Home Depot
- Eddie Lampert initiates 16.6 million share position
- These sectors (housing, retail) are in a tail spin
- 3% Yield $0.90 Rate
- Halting massive $22 billion buyback ($56 billion market cap)
- Compare that to Lampert's biggest success - SHLD $17.2 billion market cap (post-KMart)
ROK - Rockwell Automation (aerospace)
- Cleared to buyback $2 billion worth of stock
- Market cap - $10.2 billion
- ROE = 31.1; ROE above 15 for the past 5 years
- Profit margins increasing for the past 7 years
- What are the characteristics of an aerospace cycle?
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