I am confused by this statement. It’s a famous quote from Warren Buffet. What is a good company vs a fair company?
Like I could see INTC and WBD as fair companies compared to “good” or top companies in their sector like DIS and TSM. INTC is loosing market share and WBD has more debt than their market cap.
But I also feel it could be argued that INTC and WBD are good companies at a good value.
INTC is still the #1 chip maker and they have a plan to build fabs and catch up to TSM. The CEO seems excellent and they have huge potential once they improve their chips. Also great cash flow and solid div.
WBD is a cash flow machine with many amazing entertainment assets. They will be able to pay of their debt over the longterm. The stock will easily double as their EPS grows and their debt reduces.
Is a good company a company without problems? Buffet bought dumpster fire bank stocks in 2008. Were they good companies despite being on the edge of bankruptcy and collapse? Should the saying be good business model rather than good company?
The way I see it, all these problem stocks have good business models that will allow them to overcome their problems.
Anyone have an clarification for the expression in the title?
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