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.
To learn more about this strategy please click here »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 1997 - a more recent edition, "The New Buffetology" was released in 2002. We are not aware of any backtesting for this screen.
This screen uses the following criteria:
Results are sorted by:
And limited to the first 200 Results
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FTSE 100 |
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1 week | 2.2% | 0.2% | 4.7% | -5.6% | 3.2% | 0.3% | -0.3% | 2.7% |
1 month | -4.3% | -7.0% | 1.4% | -11.5% | 0.9% | -2.7% | -6.6% | 2.1% |
3 months | -10.9% | 1.1% | 0.6% | 5.5% | 2.3% | -10.6% | 0.2% | 1.4% |
6 months | -22.9% | -11.4% | -7.6% | -8.4% | -2.9% | -27.8% | -2.9% | 7.8% |
1 year | -29.6% | -15.7% | 3.8% | 28.6% | 3.3% | -31.1% | -5.7% | 8.1% |
2 years | -8.9% | 23.7% | 49.6% | 159.5% | 28.3% | -5.6% | -13.8% | 23.5% |
Annualised | 0.4% | 5.9% | 14.2% | 3.4% | 13.4% | 6.7% | -1.8% | |
Risks | ||||||||
Max Drawdown | -46.6% | -35.6% | -35.6% | -76.0% | -31.0% | -37.0% | -50.0% | |
Avg Holdings | 15.4 | 24.4 | 24.2 | 20.1 | 4.2 | 25 | 7.6 | |
Diversification | Good | Good | Good | Good | Low | Good | Low |