Garmin Ltd. (GRMN)

Warren Buffet once said that "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Garmin, it seems, is such a company. Valuation is attractive, as the PE is mere decimals away from a 5-year low, but not spectacular, and it faces doubts in coming years as consumers become more conservative and it faces competition from others in the field. However, Garmin is in a good position to weather storms for some time to come.

And Garmin is, it seems, a wonderful company. High EPS growth (35% per annum recently), wonderful ROE (43.8%), and immense net margin (28%) all sit on top of a highly-liquid, essentially unassailable balance sheet. Add to this that the company buys shares steadily, pays a 1.1% dividend, and has 35% insider ownership, and short-term troubles seem to pale.

This is not to say that Garmin has no flaws; 1.2% of insider shares have been sold in recent months, though institutions show no change. Their product is becoming almost completely ubiquitous, but their product line seems uncomfortably narrow. That, along with uneasiness in the economy at large recently seems to have pushed the price down massively since its peak. This very well may continue, but regardless, GRMN looks like an excellent addition to a portfolio for several years.