Warren Buffett Historical 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 uses historical 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 high earnings yield, return on equity and return on capital employed. In The New Buffettology, Mary Buffett and David Clark explain: "Historical per share earnings that are both strong and show an upward trend indicate a durable competitive advantage." Remember, Buffett is famous for looking beyond financial measures when examining the quality of a business franchise.
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The world's most famous living investor, chairman and CEO of Berkshire Hathaway
The New Buffettology
by Mary Buffett, David Clark
The original book, "Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor", was published in 1997Â - a more recent edition, "The New Buffetology" was released in 2002. We are not aware of any backtesting for this screen.Â
This screen uses the following criteria:
Results are sorted by:
And limited to the first 200 Results
| Returns |  |
 |
 |
 |
 |
 |
 |
FTSE 100 |
|---|---|---|---|---|---|---|---|---|
| 1 week | -2.6% | -2.1% | -3.0% | 1.3% | -0.5% | -2.9% | -1.7% | 1.0% |
| 1 month | -10.0% | -7.8% | -1.7% | 1.7% | -2.9% | -3.8% | -3.4% | -2.7% |
| 3 months | -19.0% | -14.4% | -6.5% | -11.7% | -10.0% | -6.2% | -5.2% | -6.3% |
| 6 months | -20.0% | -19.4% | -4.8% | -29.1% | -7.7% | -11.9% | -3.4% | -11.9% |
| 1 year | -20.4% | -22.5% | -4.8% | -40.6% | -4.4% | -8.0% | -4.1% | -8.1% |
| 2 years | -14.8% | -17.7% | -1.1% | -14.9% | 8.5% | 2.3% | 2.7% | -1.5% |
| Annualised | 0.1% | 1.8% | 9.3% | -4.0% | 10.4% | 11.7% | 8.3% | |
| Risks | ||||||||
| Max Drawdown | -36.6% | -29.3% | -27.1% | -52.5% | -12.7% | -22.0% | -20.6% | |
| Avg Holdings | 15.3 | 24.1 | 24.9 | 16.2 | 5.3 | 25 | 7.2 | |
| Diversification | Good | Good | Good | Good | Low | Good | Low | |
