Saturday, August 29, 2009

Stocks That Might Interest Warren Buffett

One way in which to uncover stock investments is to run stock screens. Once resulting stocks are uncovered, one should track the performance of the screen before investing any real dollars. Additionally, conducting fundamental and detailed research on each stock is recommended before investing. The various stock screens from the American Association of Individual Investors cover a wide range of different investment strategies.

Below is a stock screen that incorporates many of Warren Buffett's criteria.
  • Free Cash Flow greater than or equal to $250 million
  • Profit Margin (ttm) greater than or equal to 15
  • Return on equity greater than or equal to 15
  • Market capitalization greater than or equal to $500 million
Additional screens applied:
  • Dividend yield greater than .25%
  • Earnings growth rate past 5-years greater than 10%
  • S&P Earnings & Dividend Quality Ranking B or better. I did include a couple of non-rated stocks in the below list.

With any stock screen output, this is simply a starting point for investors.

Disclosure: Direct or indirect long interest in MCD, PG, BDX, SLB, MON, BCR, SCHW

1 comment :

Jason M. Finkelstein said...

for a live up-to-date look at the stocks in Warren Buffett's Berkshire Hathaway portfolio, here's another useful resource: