Is STAAR Surgical a Warren Buffett Stock?
Warren Buffett's timeless approach to picking stocks is something that every investor should know. With his focus on traits like financial consistency and sustainable competitive advantages, Buffett's strategy is proven effective, and it also has a consistent internal logic that's both elegant and enviable. So, one of the questions I ask when I'm evaluating an equity is whether Warren Buffett would like the company.
In the case of STAAR Surgical Company (NASDAQ: STAA), I think the answer is yes. In fact, STAAR's implantable lenses for vision correction make it a company that has many of the canonical Buffett traits. Its product serves a timeless purpose, and its financial discipline is strong. Likewise, it has a competitive moat, and its future is bright thanks to a large and growing global market for its products. But would Buffett be able to make peace with the company's heavy marketing spending targeted at ophthalmic surgeons and its frequently thin margins?
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Source Fool.com
