Indian IT trioka fit for Buffett's portfolio: S&P
Infosys, Wipro and Satyam Computer have been named alongside global giants Microsoft, Oracle, Ericsson, Cisco Systems, Diageo, China Mobile and SAP.
By PTI |
NEW DELHI: The world's greatest investor Warren Buffett may have shied away from putting his money in Indian companies so far, but those fulfilling his investment criteria include at least three companies based here -- namely Infosys, Wipro and Satyam Computer.
Standard and Poor's, one of the world's biggest investment services providers that compiles a list of stocks meeting the legendary investor's appetite twice a year, has named the three of the biggest names in Indian IT space in the latest model portfolio.
The American Depositary Receipts of the three Indian IT giants have been named alongside global giants Microsoft, Oracle, Ericsson, Cisco Systems, Diageo, China Mobile and SAP.
Besides, the list also includes 3M Company, Altria, British American Tobacco, Mcgraw-Hill Company and Qualcomm.
Standard & Poor's has been updating its S&P Promising Growth Portfolio twice a year -- in February and August -- since 1995 and it includes stocks reflecting the criteria that Buffett has emphasised in the past, although "these are not necessarily stocks that Buffett has bought or ever personally plans to buy."
The latest list consists of 55 stocks across sectors like healthcare, consumer products and technology and marks a growing number of European and Asian names, S&P said.
In the previous list published in February, there were a total of 56 stocks and included Infosys and Satyam Computers.
Wipro has become the third Indian company to make it to the portfolio in its latest edition. However, the previous list included Cognizant Technology based in US, but has significant exposure India with a majority of its labour force and operations being in the country.
Standard and Poor's, one of the world's biggest investment services providers that compiles a list of stocks meeting the legendary investor's appetite twice a year, has named the three of the biggest names in Indian IT space in the latest model portfolio.
The American Depositary Receipts of the three Indian IT giants have been named alongside global giants Microsoft, Oracle, Ericsson, Cisco Systems, Diageo, China Mobile and SAP.
Besides, the list also includes 3M Company, Altria, British American Tobacco, Mcgraw-Hill Company and Qualcomm.
Standard & Poor's has been updating its S&P Promising Growth Portfolio twice a year -- in February and August -- since 1995 and it includes stocks reflecting the criteria that Buffett has emphasised in the past, although "these are not necessarily stocks that Buffett has bought or ever personally plans to buy."
The latest list consists of 55 stocks across sectors like healthcare, consumer products and technology and marks a growing number of European and Asian names, S&P said.
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In the previous list published in February, there were a total of 56 stocks and included Infosys and Satyam Computers.
Wipro has become the third Indian company to make it to the portfolio in its latest edition. However, the previous list included Cognizant Technology based in US, but has significant exposure India with a majority of its labour force and operations being in the country.
While a number of globally renowned investors like George Soros have invested in Indian companies, none of the domestic firms have yet made to the portfolio of Berkshire Hathaway, the holding firm through which Buffett makes his investments.
Market observers believe high volatility and expensive valuations have kept Indian stocks away from Buffett's radar.
The portfolio of Buffett, the world's third richest person with a net worth of more than $52 billion, consisted of 44 stocks across the world as of March 31, 2007.
These included the world's largest soft drink maker Coca-Cola, consumer products giants Johnson and Johnson and Procter and Gamble, largest retailer Wal-Mart, sport goods major Nike, energy giant ConocoPhillips and financial services provider American Express
US-based business magazine Business Week, published by McGraw-Hill that also owns Standard & Poor's, said in its latest issue that Buffett has made his reputation as the "world's greatest investor" by taking the longer view -- buying quality stocks with good earnings power and hanging on through bull and bear markets.
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"While Buffett has made the occasional mis-step in last few decades, over his career he has parlayed some well-chosen core holdings into an unparalleled performance record -- not to mention an enormous personal fortune," it said.According to S&P, the selection metrics for the list included a minimum market capitalisation of $500 million, owner earnings of at least $250 million (revised from $50 million previously), net margins of at least 15 per cent for trailing 12 months, projected cash flow per share being greater than the current market price for each stock.
Besides, return on equity should be at least 15 per cent for previous quarter and in every year for the last three years, BusinessWeek quoted S&P analysts as saying.
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