We recently ran across an interview where Warren Buffett discusses several small strategies he employs when valuing a stock, in particular PetroChina, one of his investments at the time. An interesting suggestion on Buffett’s part is to read a company’s annual report before knowing anything about the company’s price or market value. According to him, this helps him get a more objective idea of how much a company may be worth.
When the interviewer asked something along the lines of: “How did you find Petrochina’s report when no one knew about it”? Buffett responded: “Well, some men read Playboy, I read annual reports”.