RULE #1 QUESTION OF THE WEEK: WHAT IS A COMMODITY STOCK?

Somehow Monday came and went and I forgot the 9 a.m. post.  Here it is, with my apologies. David had a question about how to identify a commodity stock. Read on:

Hi Phil,

Here's a question that you may want to touch on in a blog entry. I know Rule #1 investors do not trade in commodities so I recently dropped UNT because it is resource based (thankfully at a small profit). I am wondering what constitutes a commodity in your eyes. I've been reading Robert G. Halstrom's "The Warren Buffet Way." He includes (p.71 ) automobiles, computers, airline service, banking and insurance as commodity-type stock. Based on Halstrom's assertion, I imagine we should stay away from Honda (HMO) or IBM even if they had excellent numbers and their share prices fell to an acceptable MOS. Would you agree?

David Brien