I purchased the stock of Research in Motion (RIMM), maker of the Blackberry phone, on September 21st, 2010 – a short 3 months ago.  When bought at $47.53, it was at a 25% discount to my calculated Intrinsic Value.  It steadily rose from day 1 and was sold on Jan. 5th at $61.78, a quick 30% rise in 3 months.

That’s what I do best.  Buy great companies at good prices.  I only purchase those who have shown historically steady and predictable cash flow growth and buy when they are undervalued.  Then sell them at their Intrinsic Value  based on Discounted Cash Flow analysis.  It’s what investing is all about.  Buy with a Margin of Safety, Sell at Intrinsic Value.   Hold cash when nothing is available at my price.

Here’s the article where I purchased it:   Walking the Worlds RIMM

If I had instead bought an S&P 500 index fund on September 21st, it would have returned 11.5%, which is an unbelievable 3 months for the market.  But I”ll take 30% any day.

Purchased Research in Motion (RIMM) today, maker of the Blackberry phone.  RIMM generates too much cash to ignore, and is selling at a discount to conservative growth estimates.  RIMM has had explosive growth of free cash over the last 10 years.   FCF keeps growing around 45% per year, revenue over 50% per year.

Being a tech stock we have to be conservative about future growth, but RIMM seems intent on using it’s cash stockpile to keep up with consumer and business demands:

RIMM battles back with Blackpad

I purchased this stock at $47.53.