Monday, March 7, 2011

3 Reasons Why Warren Buffett May Buy General Dynamics

Follow My Alpha submits:

Warren Buffett came out last week saying that he?s out in the bush hunting big game and has an ?itchy finger? for the next acquisition. This isn?t much of a surprise in our opinion given that US economy is making a somewhat awkward yet potent economic recovery. He has also indicated that in his opinion the investment community lacks a consensus on how to value the market currently. Paralysis by over analysis sounds spectacular to us because that means there is an opportunity in the market. We think that if Buffett goes after any large acquisition he will ?play it safe? by trying to take down a big player in the US economy that operates in a currently nondescript industry.

Using this mindset the defense industry pops into our head. The industry is a cash cow, recession resistant, and besides the occasional short-term hiccup has long-term growth potential. General Dynamics


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Cat Power January Jones Christina DaRe Malin Akerman Melissa Joan Hart

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