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John Dorfman: Why I relish low-debt stocks

John Dorfman AP The logo of Swiss computer device producer Logitech in front of the European headquarters in Morges, Switzerland.   TribLIVE s Daily and Weekly email newsletters deliver the news you want and information you need, right to your inbox. When it comes to picking stocks, most investors go gaga over earnings and pay little attention to a company’s financial strength. I say that a strong financial position is far more important than whether a company “beat consensus” by 10 cents a share in the latest quarter or failed to beat it. As evidence, I’d offer the history of my low-debt recommendations in this column. I’ve written 18 columns recommending stocks with low debt. The average 12-month gain on these recommendations has been 29.9%.

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