A Lesson From Warren Buffett...

Warren Buffett recently purchased the market leading specialty chemical company, Lubrizol (NYSE: LZ) at a premium of $135/share. However, Buffett still managed to buy this at value, paying a mere 13x last year's earnings, and 12x forecasts for 2011. This is a classic example of Buffett investing. Brett Arends, of the Wall Street Journal, outlines nine salient theses for LZ:

1. It's lucrative niche.
2. It has a wide economic moat.
3. It's in a dull industry.
4. It has pricing power.
5. It's stable.
6. It benefits from overseas growth.
7. It has low unionization.
8. The stock was reasonably priced.
9. He likes the management.

These are all key investment drivers that every investor should start looking at when doing fundamental analysis of a company (i.e., management, economic moats, valuation).

Here is the link to the Wall Street Journal article:
http://online.wsj.com/article/SB10001424052748703328404576207040639038696.html?mod=sf2tw