Validea Spotlights AMAT, Costco; Munger: Expect 50% Drops

Validea’s guru-fundamental reports applying a Warren Buffett “Patient Investor” model highlight Applied Materials (AMAT) at 100% and Costco (COST) at 92%, while Apple (AAPL) and Microsoft (MSFT) receive top marks in some reports and about 86% in others; Union Pacific (UNP) scores roughly 75%. Validea says a score above 80% indicates the model has interest in a stock and above 90% indicates strong interest, reflecting profitability, low debt and valuation under Buffett criteria. The highlighted firms span semiconductors, retail, communications equipment/software and railroads, showing the model’s cross‑sector application. Investors should weigh these model picks against Buffett’s advice that concentrated portfolios suit only “know‑something” investors, and heed Charlie Munger’s 50%‑drop test as a reminder that achieving exceptional long‑term returns requires the temperament to endure large temporary losses, so risk tolerance and portfolio construction matter before emulating concentrated guru‑style selections.