What does Warren Buffet do to find profitable stocks we can use for penny stock investing

Warren Buffet success with stocks is well known. He has made millions buying undervalued companies the market hadn't yet identified. His approach to finding a diamond in the rough is unprecedented. Considering his sucess, Warren Buffet is outlier among all investors. What makes him successful? Does he have the 10,000 hours we are told will create elite experts in their chosen field? Was he born within a period of time that allowed his intelligence and expertise to achieve the success due to market conditions? Would it be helpful to know his history, background, or another characteristic of the outlier?

Does it matter? Would we understand his approach better? Could we become an outlier in the investment world with this information? It is interesting to note Warren Buffets approach is well known yet a recent announcement by Berkshire Hathaway to buy Lubrizol (LZ) had gone unnoticed by investors. Alex Dumortier (CFA) discusses this in his article The master finds value in plain sight.

What is Warren Buffets approach and how does it relate to penny stocks? Is it even possible to find a diamond in the rough in penny stocks?

Warren Buffet is known to follow a stock for months even years before buying. By following a stock, he bides his time till the stock is temporarily undervalued. when this happens, he doesn't hesitate to make the purchase. He then is willing to hold the stock betting the demand for the product or service will be greater than they are now.

I like what Warren Buffet believes, quote "I basically believe this country will prosper and you'll have more people moving more goods 10 and 20 and 30 years from now........

I am a penny stock investor because I don't have the means to buy investments in growing companies who have prove their value and over time become undervalued and who become targets for Warren Buffet. I have to look for companies who justify a purchase because they are undervalued at pennies instead of dollars. I have to find companies who have an identified brand, a leader in their field within the penny stocks, are profitable and its products unlikely to become obsolete.

To do so, I have had to look beyond the hype penny stocks currently thrive in. The hype is so entrenched, investors stay away from the penny stock companies believing the opportunity for loss is greater than the opportunity for gain. They laugh when I say there are undervalued companies in the market place for "Warren Buffet" thinking penny stock investors.

Yes, they may be boring, profitable, well run with share values at pennies. As a "Warren Buffet" approach investor in penny stocks, my little $500 invested in an undervalued company is as large a deal to me as Berkshire Hathaway recent 9.7 billion dollar deal to buy shares of Lubrizol. Lubrizol was priced at $135.00, per share.

My "Warren Buffet" undervalued company continues to be APNX. It is well run, has a contract till 2015 with the US post office worth millions, is a leader in the delivery business in the states they are marketed. APNX is profitable in a tough economy. This company has been undervalued for over a year. Its price has been as low as $.06 a share, its range been within $.04 of this price. Number of shares traded daily has been minimal, few are with me on this. Yet recently the company's shares have seen a significant rise in value. Its recent high has been $.15 a share, with a long term trading goal of $.50 + a share, a price it hasn't seen in a couple of years. I own shares buying at $.12. I have held it over a year seeing its value drop drastically before finally moving higher to a point where I now have a profit of a few dollars. Like Warren Buffet, I am patient. APNX's value will be discovered and it will no longer be considered undervalued.