The Simple Reason Why I Won't Buy iRobot Corporation Stock

There is a simple reason for which I won't buy iRobot Corporation (NASDAQ: IRBT) stock and it has nothing to do with the present quality of the business. Indeed, under a strong management team, the company has established a dominant position in a large, high-growth market: home-use robots (iRobot's flagship product is the Roomba vacuuming robot).

The reason isn't related to the stock's valuation, either: I don't have a view on whether or not the shares are over- or undervalued.

Before I reveal my reason, I have a confession to make: I'm a value investor in the Warren Buffett mold. In other words, like the legendary investor and chairman of Berkshire Hathaway Inc., I'm interested in paying a fair (or unfairly low!) price for shares in high-quality businesses run by able, honest managers, and I aim to own the shares over protracted periods (a decade or longer, ideally). With regard to iRobot, the rub lies in the last stipulation.

Source: Fool.com