First Three Picks

I followed the book's guidance and used yahoo finance to look for companies in different sectors. Two industries caught my eyes, pharmaceutical and minings. This is how I see it, as our human society becomes more populated there will be a greater need for different prescription drugs and minerals.

Three companies caught my eyes, here are their big 5 numbers (Second row is year. Third row is growth percentage).

Compania de Minas Buenaventura SA (ADR) (Public, NYSE:BVN)



GlaxoSmithKline plc (ADR) (Public, NYSE:GSK)



Vale (ADR) (Public, NYSE:RIO)



Click on the pictures to enlarge them.

All the results were calculated from data provided by http://money.msn.com/

I didn't include the free cash flow growth rate for any of the three companies because they were inconsistent and unpredictable.

As you can see, the number looks pretty good on all three of the companies, after further reading I found out that the fundamental of the three companies are also decent. BVN is my favorite company on this list and GSK is my least favorite. However, I decided to buy some shares of GSK because I found out that Mr. Buffet had bought some of them last year. I concluded that since Mr. Buffet bought the stock, other investment firms will probably jump on the Buffet wagon and therefore creating a bull market for GSK. I know I'm making a Rule #1 mistake because I should trust in my own analysis and not follow the market, we will see how it turns out.

RIO and BVN will be on my watch list, in fact I'm considering buying RIO on Monday, more analysis coming tomorrow.

Buy GSK 22@44.51 02/25/08