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Buffett - What Are the Criteria for Taking a Company Private?
Michael Mobison interviews Todd Combs at the Graham and Dodd breakfast. Combs says he goes to Buffett's house on most Saturdays and they talk through three criteria. They are stocks in the S&P 500 that one trade at a next 12 month PE of 15 or less. Two, they have a 90% confidence The company will have higher earnings five years from now. And three, they think the company can grow earnings per share at least a 7% Kager, compounded annual growth rate for the next five years with a 50% confidence level.