Seeing Value in Rearview Mirrors
Real Money readers have often heard me refer to investing in quality, attractively priced businesses as the holy grail to investment. The economy doesn't matter, we are quick to say, if one invests in a quality business that's selling at an attractive price. Just buy a quality, attractively priced business, Warren Buffett preaches, and let the upside take care of itself.
So what does a quality, attractively priced business look like? It looks like Gentex (GNTX), a leading producer of electronic products for the automotive industry as well as a maker of fire-protection products. Shares in Gentex are currently fetching $17.75, off from a 52-week high of $32. The market is currently valuing Gentex at $2.5 billion, or an enterprise value of $2.1 billion when you account for the $400 million in cash that's on the company's debt-free balance sheet. Let's see how Gentex fulfills the value investor's two conditions of quality and an attractive valuation....565 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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