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History Warren Buffett Sustainable Growth is a quality investing strategy inspired by an interpretation of Warren Buffett's investment approach by Mary Buffett and David Clark in their book, The New Buffettology. It is a strategy that combines Buffett's focus on value and business quality. To work out whether the stock is reasonably valued, the strategy forecasts sustainable earnings growth; the higher that growth rate is, the more likely it is that the company has a durable competitive advantage. The strategy also looks for low debt and a growing earnings yield, return on equity and return on capital employed. In The New Buffettology, Mary Buffett and David Clark explain: "Consistency is everything. Warren is not after a company that occasionally has high returns on shareholders' equity, but one that consistently earns high returns." Remember, Buffett is famous for looking beyond financial measures when examining the quality of a business franchise. more »

FAIL
EPS Gwth Streak > 4
PASS
ROE % 5y Avg > 15
PASS
ROCE % 5y Avg > 12
PASS
FCF > 0
PASS
Long Term Debt < 5 * Net Profit before Extraords
FAIL
Price 5y CAGR % > 0
PASS
NAV PS 5y CAGR % > 0
PASS
Earnings Yield % Last Yr > 3
PASS
Exp. Return (Sust Gwth) > 15
FAIL
Qualifies in the top 200 stocks sorted by Exp. Return (Sust Gwth) descending

Click Here to view all the stocks qualifying under this Strategy.

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  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
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