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"Something to rememeber here is that not every company we purchase will meet all the criteria. Direction is often more important than location."

I agree, which is one reason why I nominated Ericsson. As I said in my original post, they are close but not quite there in both gross and net margins. And their net margins have increased steadily over the last few years.

Otherwise, they fit the CK criteria very well. In addition, they have grown at a 31.1% rate over the last 5 years, and Zacks has them down for a 25.7% rate over the next 5. They are a world-wide name, even if they are not as well known in this country, but recognizability in this country alone is certainly not a determining criterion.

The major negatives as I see them (beyond the slightly sub-standard gross and net margins) are that they have only really been a force the last three years or so, so they don't have the track record of a company like Johnson & Johnson, for instance. In addition, although they are well positioned to take enormous advantage of the Asian market, as we have seen that is a double-edged sword. Still, assuming that market will eventually take off (especially in China), Ericsson is in the drivers seat.

Although there is no reason to select a foreign company just because we haven't yet, there are several very strong candidates out there, and only one of them made it onto anyone's list. I love Louis Vuitton, by the way, but I think Tom just picked that one so that he'd have an excuse to break out the champagne early. :c)

==> david
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