The Zulu Principle is an investment strategy made famous by Jim Slater in the book of the same name. It is a GARP investing style which uses a combination of growth and value, looking for shares where brokers are forecasting high earnings growth, but which are currently valued at a price that is low relative to their forecast earnings. The strategy aims to capture growth companies at a reasonable price by using the PEG Ratio. Slater uses forecast earnings to calculate both PER and the EPS Growth Rate. As Slater puts it: "I have always been attracted to growth shares, particularly those that can be purchased at what I perceive to be a discount to their proper value”. To learn more about this strategy please click here »
UK investment guru who specialises in growth investing. Wrote the 'Zulu Principle'
The Zulu Principle: Making Extraordinary Profits from Ordinary Shares
by Jim Slater
According to Company REFS, Irish stockbrokers Merrion back-tested a Zulu Principle portfolio of stocks and concluded that it would have delivered an almost 10 year CAGR of 24.5% (excl. costs), compared to just 4.4% CAGR for the FTSE All Share.
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|Timeframe||Screen Returns||FTSE 100||Outperformance|
|Average No. of Holdings||16.2|
|Ticker||Name||Mkt Cap £m||P/E Rolling 1y||PEG Slater||EPS Gwth % Rolling 1y||ROCE %||RS 1y||Sector|
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