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 | -3.3% | 0.2% | -1.4% | 7.2% | -2.2% | -0.7% | 0.5% | -1.3% |
| 1 month | -12.3% | -7.0% | -7.5% | -16.3% | -4.8% | -2.9% | -1.4% | -3.4% |
| 3 months | -11.4% | -8.5% | -6.4% | -18.8% | -2.4% | -7.0% | 2.0% | -7.5% |
| 6 months | -11.3% | -11.5% | 2.2% | -36.9% | 2.7% | -8.2% | 9.1% | -2.4% |
| 1 year | -15.7% | -21.1% | 1.3% | -35.2% | -3.0% | -5.6% | 2.0% | -6.1% |
| 2 years | -7.6% | -7.2% | 4.9% | -25.0% | 10.9% | -1.0% | -5.8% | 1.5% |
| Annualised | 1.4% | 3.8% | 9.4% | -6.1% | 13.7% | 14.3% | 10.7% | |
| Risks | ||||||||
| Max Drawdown | -30.7% | -25.1% | -27.1% | -52.5% | -12.7% | -18.2% | -20.6% | |
| Avg Holdings | 15.1 | 24 | 24.9 | 15.6 | 5.2 | 25 | 7 | |
| Diversification | Good | Good | Good | Good | Low | Good | Low | |
