Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South Korean steelmaker POSCO (NYSE: PKX) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at POSCO's business and see what CAPS investors are saying about the stock right now.

POSCO facts

Headquarters (Founded)

Seoul, South Korea (1968)

Market Cap

$31.9 billion



Trailing-12-Month Revenue

$32.47 billion


CEO Joon-Yang Chung

CFO Jong-Tae Choi

Return on Equity (Average, Past 3 Years)



ArcelorMittal (NYSE: MT)

U.S. Steel (NYSE: X)

Nucor (NYSE: NUE)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 930 members who have rated POSCO believe the stock will outperform the S&P 500 going forward. These bulls include athenamike and Simbalion200.

A few months ago, athenamike reminded Fools that POSCO "is one of the most efficient steel manufacturers in the world, especially in higher end products like stainless steel." Our CAPS member concludes: "Added to this, its geographic location and future expansion plans allow for continued growth for many years to come."

POSCO's low-cost operations and high exposure to emerging markets continue to drive its five-star CAPS status. In fact, POSCO's laser-like focus on efficiency has translated into historically higher operating margins than formidable steel foes ArcelorMittal, U.S. Steel, and Nucor. And with Berkshire Hathaway's (NYSE: BRK-A)(NYSE: BRK-B) 4.5% stake in the company, POSCO bulls can rest assured that Warren Buffett, himself, stands ready to oppose any questionable acquisitions.

CAPS member Simbalion200 sums it up:

The company makes hot- and cold-rolled steel products (plate steel, stainless steel, electrical steel, and wire rods), which it sells to the auto and shipbuilding industries. It produces more than 30 million tons of steel a year, making it the world's No. 3 steelmaker behind the combined ArcelorMittal and Nippon Steel. ... The South Korean government privatized its stake in POSCO in 2001, ending the company's 30-year steelmaking monopoly. ... Very profitable company with significant upside. Stock should outperform the market.

What do you think about POSCO, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Berkshire Hathaway is a Motley Fool Inside Value recommendation. Berkshire Hathaway and Nucor are Motley Fool Stock Advisor choices. The Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.