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 | 12.1% | 5.0% | 6.8% | -2.2% | 8.8% | 7.1% | 16.8% | 4.1% |
| 1 month | -27.9% | -23.9% | -19.8% | -34.2% | -16.9% | -10.5% | -24.2% | -13.8% |
| 3 months | -34.6% | -29.3% | -25.8% | -36.2% | -16.2% | -22.0% | -39.7% | -24.8% |
| 6 months | -21.1% | -16.5% | -22.1% | -42.1% | -7.5% | -19.7% | -39.4% | -23.4% |
| 1 year | -18.3% | -11.1% | -11.4% | -55.4% | 1.2% | -14.6% | -33.7% | -22.1% |
| 2 years | -20.7% | -21.8% | 1.8% | -69.7% | 3.2% | -25.0% | -33.4% | -19.6% |
| Annualised | -0.7% | 0.9% | 6.7% | -20.1% | 8.4% | 4.5% | -4.8% | |
| Risks | ||||||||
| Max Drawdown | -46.6% | -35.6% | -35.6% | -75.8% | -31.0% | -33.8% | -50.0% | |
| Avg Holdings | 16.1 | 24.2 | 25 | 17.5 | 4.8 | 25 | 8.8 | |
| Diversification | Good | Good | Good | Good | Low | Good | Moderate | |
