Last week’s screen was based on the preferred factors that infamous investor Peter Lynch used. This week we move on to Warren Buffet. Not only do we rank stocks based on a handful of Buffet’s preferred fundamental factors, but we do so on the 47 stock holdings in his portfolio holding company Berkshire Hathaway.
The pie chart below shows that Apple comprises over half of Berkshire’s holdings, and 30 of its 47 stocks constitute less than half a percent of its portfolio. The sheer number of small holdings results in a labeling issue in the chart.
Of the stocks that ranked in the top five of this screen, only one, Chevron (CVX – 6.65%), has a meaningful contribution to the portfolio.
Screening Criteria
- Revenue Growth (Last 5 Years)
- Profit Growth (Last 5 and Next 5 Years)
- Price to Free Cash Flow
- ROIC
- Debt to Equity
Company Summaries
Floor and Decor Holdings (FND)
Visa Inc. (V)
Aon PLC (AON)
Liberty SiruiusXM Group (LSXMA)
Chevron Corp. (CVX)
Disclosure
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.
Follow Michael on Twitter or go to 720global.com for more research and analysis.
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