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 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
| Returns |  |
 |
 |
 |
 |
 |
 |
FTSE 100 |
|---|---|---|---|---|---|---|---|---|
| 1 week | 1.6% | 1.1% | 1.1% | 4.1% | 6.8% | 2.4% | 2.5% | 0.5% |
| 1 month | 1.4% | -2.7% | -3.7% | -6.2% | 3.3% | -2.3% | 0.2% | -1.7% |
| 3 months | 8.2% | -0.2% | 3.5% | 5.0% | 4.4% | 0.7% | -0.7% | 2.2% |
| 6 months | 11.7% | 5.5% | 11.1% | -3.4% | 10.1% | -2.1% | 0.5% | 5.4% |
| 1 year | -5.8% | -13.5% | 11.0% | -31.4% | 0.8% | -14.1% | -0.9% | -6.9% |
| 2 years | -4.5% | -18.1% | 18.1% | -34.3% | 19.8% | -2.4% | 8.7% | -2.2% |
| Annualised | 2.6% | 3.3% | 11.4% | -4.7% | 12.1% | 10.6% | 7.4% | |
| Risks | ||||||||
| Max Drawdown | -37.0% | -31.6% | -27.1% | -52.5% | -17.5% | -24.9% | -20.6% | |
| Avg Holdings | 15.6 | 24.1 | 24.9 | 17.4 | 5.6 | 25 | 8.1 | |
| Diversification | Good | Good | Good | Good | Low | Good | Moderate | |
