Someone sent me an email asking this very question.
I think it is helpful to look deeper than just the financial statements. Look inside the business. This seems to be something Warren Buffett does. The example I would give is Western Union (WU). This is a company where it looks like operating income is flat regardless of the economy:
2005: $1.27 billion
2006: $1.31 billion
2007: $1.32 billion
2008: $1.36 billion
2009: $1.28 billion
2010: $1.30 billion
Hot Warren Buffett Stocks To Buy Right Now: Synnex Corporation(SNX)
SYNNEX Corporation provides distribution and business process outsourcing (BPO) services to resellers, retailers, and original equipment manufacturers (OEMs) worldwide. The company operates in two segments, Distribution Services and Global Business Services (GBS). The Distribution Services segment distributes information technology (IT) products, including IT systems, peripherals, system components, software, networking equipment, consumer electronics, and complementary products in the United States, Canada, Japan, and Mexico. This segment also offers contract assembly services, such as systems design, build-to-order, configure-to-order, and assembly capabilities; value-added services comprising kitting, reconfiguration, asset tagging, and hard drive imaging for government and healthcare sectors; and specialized services in print management, renewals, and networking. The GBS segment offers a range of BPO services, including customer management, renewals management, back of fice processing, and IT outsourcing on a global platform comprising technical support, demand generation, and marketing and administration services through voice, chat, Web, email, digital print, and social media. SYNNEX Corporation also provides logistics services, such as outsourced fulfillment, virtual distribution and direct ship to end-users; financing services consisting of net terms, third party leasing, floor plan financing, letters of credit backed financing, and arrangements; marketing services comprising direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, database analysis, print on demand services, and Web-based marketing; and online and technical support services. The company was formerly known as SYNNEX Information Technologies, Inc. and changed its name to SYNNEX Corporation in October 2003. SYNNEX Corporation was founded in 1980 is headquartered in Fremont, California.
Hot Warren Buffett Stocks To Buy Right Now: Electrocomponents(ECM.L)
Electrocomponents plc distributes electronics and maintenance products to engineers in the United Kingdom, rest of continental Europe, North America, and the Asia Pacific. It offers electronics, electrical, industrial, and commercial supplies and services primarily under the RS brand, as well as under the Allied brand. The company sells its products through catalogues, trade counters, third party distributors, and ecommerce operations, as well as trading Web sites serving electronics and maintenance engineers. Electrocomponents plc was founded in 1937 and is based in Oxford, the United Kingdom.
10 Best Clean Energy Stocks For 2014: National Security Group Inc.(NSEC)
The National Security Group, Inc., an insurance holding company, provides various property and casualty, and life insurance products and services in the United States. It operates in two segments, Property and Casualty Insurance, and Life Insurance. The Property and Casualty Insurance segment primarily provides personal lines coverage, including dwelling fire and windstorm, homeowners, mobile homeowners, ocean marine, and personal non-standard automobile lines of insurance in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, and operates on a surplus lines basis in the states of Louisiana, Missouri, and Texas. The Life Insurance segment principally offers ordinary life, accident and health, supplemental hospital, and cancer insurance products in Alabama, Florida, Georgia, Mississippi, South Carolina, and Texas. The company markets its products through a field force of agents and career agents, as well as thr ough a network of independent agents and brokers. The National Security Group, Inc. was founded in 1947 and is based in Elba, Alabama.
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