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 | 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 | |
