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 | -0.8% | -3.9% | 0.5% | -1.9% | 0.8% | -2.7% | 0.5% | -1.4% |
| 1 month | -1.4% | -3.6% | 3.4% | 8.9% | 3.1% | 1.0% | 3.3% | -0.9% |
| 3 months | -4.3% | -8.5% | 7.8% | -12.7% | 3.2% | -2.9% | 5.7% | -2.9% |
| 6 months | -2.1% | -10.2% | 9.8% | -21.1% | 7.5% | 1.9% | 2.9% | 3.6% |
| 1 year | -2.7% | -15.1% | 14.6% | -10.8% | 9.5% | 5.7% | -1.6% | 2.3% |
| 2 years | -4.6% | -2.4% | 17.8% | 7.3% | 23.2% | 15.9% | -5.3% | 10.2% |
| Annualised | 3.0% | 4.9% | 12.6% | 5.8% | 17.4% | 19.4% | 12.1% | |
| Risks | ||||||||
| Max Drawdown | -30.7% | -18.9% | -27.1% | -41.9% | -12.7% | -12.3% | -20.6% | |
| Avg Holdings | 15 | 24 | 24.9 | 16 | 5.1 | 25 | 6.9 | |
| Diversification | Good | Good | Good | Good | Low | Good | Low | |
