A very interesting article states that the econofinancial future of Garmin may be predicted, if we apply the Buffett's stock-picking strategy. Some of the criteria that are stated in the article and are fulfilled by Garmin are given below:- Market Capitalization should be at least $250M (for Garmin is $5.7B)
- Current Ratio should be at least 1.5 (for Garmin is 4.2)
- EPS for the latest annual period should be above the EPS in the prior year and 5 years ago
- Long-term debt must not be higher than 10% of working capital. This is equivalent to a low Quick Ratio, and for Garmin this ratio is close to 3.
For your information, the portfolio of Warren Buffett is given here.
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