This is a screen for short sellers (avoiding stocks on these lists is advisable). James Montier suggested this screen based on the writings of Benjamin Graham. Graham proposed three primary sources of risk to your investment in shares or any other asset - Valuation Risk, Earnings Risk and Financial Risk - each of which should be seriously considered when purchasing a new position. This screen looks for a Graham and Dodd PE of greater than 16x (valuation risk), it must have current EPS greater than twice the ten year average (business/earnings risk), and it must also have an Altman Z score of less than 1.8 (balance sheet/financial risk). To learn more about this strategy please click here »
Former head of Global Strategy at Société Générale, now works for GMO. Author of 'Behavioural Investing' & 'Value Investing: Tools and Techniques for Intelligent Investment'.
Value Investing: Tools and Techniques for Intelligent Investment
by James Montier
The seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory (MPT) and pretty much all of its tools and techniques. This book explains how value investing is the only tried and tested method of delivering sustainable long-term returns.
Results are sorted by:
And limited to the first 100 Results
|Timeframe||Screen Returns||FTSE 100||Outperformance|
|Average No. of Holdings||13|
Please note that 'short selling' strategies are designed to underperform the market - they are best used for hedging long portfolios rather than for absolute negative returns.
|Ticker||Name||Mkt Cap £m||P/6y Avg Earnings||EPS 6y Avg||Altman Z Score (1)||Sector|
Can't see the share you expect? View this screen as a checklist to find out why.