Finding great companies that will outperform the market is tough. Warren Buffett has been consistently outperforming the market by purchasing great quality businesses at a fair price and holding them for long periods of time. After researching numerous companies, I believe Cal-Maine Foods (NASDAQ:CALM) is a business that is currently valued at a discounted price and is poised to rebound from its recent pullback going forward. My two previous articles have documented how DNP Select Income Fund (NYSE:DNP) and Johnson & Johnson (NYSE:JNJ) have been consistently outperforming the S&P500 over a long period of time. You can read more about DNP here and JNJhere. From those articles, I believe they are safe investment for young and new investors with long investment horizon. Now looking at Cal-Maine Foods, I believe this company falls in with Warren Buffett’s strategy of buying a wonderful business at a fair price, rather than a fair company at a wonderful price. This article will provide evidences and justifications as to why CALM is a company that should belong on your buy watch list and how the recent pullback in its share price could be an opportunity to buy a great quality business at a cheap and fair price.
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