Buffett Screener

Brought to you by Validea.com, the Buffett Screener is based on the book “Buffettology”. Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades. The Buffett strategy looks for stocks for an extremely long term horizon and combines both value and quality factors to identify stocks of companies with solid businesses and profitability and sound financials that trade at an attractive prices. Only stocks with consistent long term track records can pass this methodology. This screen is updated weekly. ValueWalk has a content agreement with Validea.

Users can access the full Buffett-based analysis, on any company below, as well as stock analysis, guru screens and model portfolio on Validea.com risk-free todayWatch a video demonstration of Validea’s Full Guru Screener. 

Below are the criteria used in the Buffett Screener  and details behind each value, quality and price factor. In the result table, stocks that score above 80% are consider investment ideas worth investigating further as these names pass the majority of the Buffett-based investment approach.


STAGE 1: Are the Fundamentals Sound?

  • LOOK FOR EARNINGS PREDICTABILITY
    Buffett likes companies to have solid, stable earnings that are continually expanding. This allows him to accurately predict future earnings. This model looks at 10 years of earnings.
  • LOOK AT THE ABILITY TO PAY OFF DEBT
    Buffett likes companies that are conservatively financed.
  • LOOK FOR CONSISTENTLY HIGHER THAN AVERAGE RETURN ON EQUITY:
    Buffett likes companies with above average return on equity of at least 15% or better, as this is an indicator that the company has a durable competitive advantage.
  • LOOK FOR CONSISTENTLY HIGHER THAN AVERAGE RETURN ON TOTAL CAPITAL
    Because some companies can be financed with debt that is many times their equity, they can show a consistently high ROE, yet still be in unattractive price competitive businesses. To screen this out, for non-financial companies Buffett also requires that the average Return On Total Capital (ROTC) be at least 12% and consistent.
  • LOOK AT CAPITAL EXPENDITURES
    Buffett likes companies that do not have major capital expenditures. That is, he looks for companies that do not need to spend a ton of money on major upgrades of plant and equipment or on research and development to stay competitive.
  • LOOK AT MANAGEMENT’S USE OF RETAINED EARNINGS
    Buffett likes to see if management has spent retained earnings in a way that benefits shareholders.
  • HAS THE COMPANY BEEN BUYING BACK SHARES
    Buffett likes to see falling shares outstanding, which indicates that the company has been repurchasing shares.

STAGE 2: Should I buy at this price?

  • CALCULATE THE FUTURE STOCK PRICE & EXPECTED STOCK RETURN BASED ON THE AVERAGE ROE METHOD
  • CALCULATE THE FUTURE STOCK PRICE & EXPECTED STOCK RETURN BASED ON THE AVERAGE EPS METHOD
  • LOOK AT THE RANGE OF EXPECTED RATE OF RETURN
    Model looks for stocks with a minimum of 12% return, but prefers stocks with 15% or more annual return potential based on the range of the two methods (ROE and EPS) method above.

 Latest Update as of 02/23/2015. 

Ticker Name Buffett Model Score
 TJX TJX COMPANIES INC 100%
 NOVKY NOVATEK OAO – ADR 100%
 ROST ROSS STORES, INC. 100%
 MNST MONSTER BEVERAGE CORP 100%
 FTI FMC TECHNOLOGIES, INC. 100%
 WIT WIPRO LIMITED (ADR) 99%
 PII POLARIS INDUSTRIES INC. 99%
 SYNT SYNTEL, INC. 99%
 MIDD MIDDLEBY CORP 96%
 AHGP ALLIANCE HOLDINGS GP, L.P. 94%
 AAPL APPLE INC. 93%
 DLTR DOLLAR TREE, INC. 93%
 TSCO TRACTOR SUPPLY COMPANY 93%
 MTD METTLER-TOLEDO INTERNATIONAL INC. 93%
 PETM PETSMART, INC. 93%
 CACC CREDIT ACCEPTANCE CORP. 93%
 FCFS FIRST CASH FINANCIAL SERVICES INC 93%
 HIBB HIBBETT SPORTS, INC. 93%
 CRVL CORVEL CORPORATION 93%
 ACN ACCENTURE PLC 92%
 CTSH COGNIZANT TECHNOLOGY SOLUTIONS CORP 92%
 TROW T. ROWE PRICE GROUP INC 92%
 ADS ALLIANCE DATA SYSTEMS CORPORATION 92%
 FAST FASTENAL COMPANY 92%
 ORCL ORACLE CORPORATION 89%
 AAP ADVANCE AUTO PARTS, INC. 89%
 ADP AUTOMATIC DATA PROCESSING 86%
 PCP PRECISION CASTPARTS CORP. 86%
 SHW SHERWIN-WILLIAMS CO 86%
 SSL SASOL LIMITED (ADR) 86%
 GWW W W GRAINGER INC 86%
 NTES NETEASE, INC (ADR) 86%
 COH COACH INC 86%
 CHRW C.H. ROBINSON WORLDWIDE, INC. 86%
 JBHT J B HUNT TRANSPORT SERVICES INC 86%
 FDS FACTSET RESEARCH SYSTEMS INC. 86%
 CLB CORE LABORATORIES N.V. 86%
 ROL ROLLINS, INC. 86%
 FOSL FOSSIL GROUP INC 86%
 BMA BANCO MACRO SA (ADR) 86%
 BKE BUCKLE INC 86%
 EBIX EBIX INC 86%
 WRLD WORLD ACCEPTANCE CORP. 86%
 CPSI COMPUTER PROGRAMS & SYSTEMS, INC. 86%
 NVO NOVO NORDISK A/S (ADR) 85%
 SAP SAP SE (ADR) 85%
 INFY INFOSYS LTD ADR 85%
 PAYX PAYCHEX, INC. 85%
 VTKLY VTECH HOLDINGS LTD (ADR) 85%
 FIZZ NATIONAL BEVERAGE CORP. 85%
 BRLI BIO-REFERENCE LABORATORIES INC 85%
 UG UNITED-GUARDIAN, INC. 85%
 BTI BRITISH AMERICAN TOBACCO PLC (ADR) 82%
 COL ROCKWELL COLLINS, INC. 82%
 CPA COPA HOLDINGS, S.A. 80%
 MLAB MESA LABORATORIES, INC. 80%
 MSFT MICROSOFT CORPORATION 79%
 CHL CHINA MOBILE LTD. (ADR) 79%
 LMT LOCKHEED MARTIN CORPORATION 79%
 VFC VF CORP 79%
 INTU INTUIT INC. 79%
 AMTD TD AMERITRADE HOLDING CORP. 79%
 GPS GAP INC 79%
 CHKP CHECK POINT SOFTWARE TECHNOLOGIES LTD. 79%
 GPC GENUINE PARTS COMPANY 79%
 BBBY BED BATH & BEYOND INC. 79%
 VAR VARIAN MEDICAL SYSTEMS, INC. 79%
 FFIV F5 NETWORKS, INC. 79%
 TDC TERADATA CORPORATION 79%
 JKHY JACK HENRY & ASSOCIATES, INC. 79%
 DCI DONALDSON COMPANY, INC. 79%
 URBN URBAN OUTFITTERS, INC. 79%
 CPRT COPART, INC. 79%
 PRAA PRA GROUP INC 79%

 

 

 

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Buffett Screener

Buffett Screener

Buffett Screener

Buffett Screener

Buffett Screener

Buffett Screener