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. 

TickerNameBuffett Model Score
 TJXTJX COMPANIES INC100%
 NOVKYNOVATEK OAO – ADR100%
 ROSTROSS STORES, INC.100%
 MNSTMONSTER BEVERAGE CORP100%
 FTIFMC TECHNOLOGIES, INC.100%
 WITWIPRO LIMITED (ADR)99%
 PIIPOLARIS INDUSTRIES INC.99%
 SYNTSYNTEL, INC.99%
 MIDDMIDDLEBY CORP96%
 AHGPALLIANCE HOLDINGS GP, L.P.94%
 AAPLAPPLE INC.93%
 DLTRDOLLAR TREE, INC.93%
 TSCOTRACTOR SUPPLY COMPANY93%
 MTDMETTLER-TOLEDO INTERNATIONAL INC.93%
 PETMPETSMART, INC.93%
 CACCCREDIT ACCEPTANCE CORP.93%
 FCFSFIRST CASH FINANCIAL SERVICES INC93%
 HIBBHIBBETT SPORTS, INC.93%
 CRVLCORVEL CORPORATION93%
 ACNACCENTURE PLC92%
 CTSHCOGNIZANT TECHNOLOGY SOLUTIONS CORP92%
 TROWT. ROWE PRICE GROUP INC92%
 ADSALLIANCE DATA SYSTEMS CORPORATION92%
 FASTFASTENAL COMPANY92%
 ORCLORACLE CORPORATION89%
 AAPADVANCE AUTO PARTS, INC.89%
 ADPAUTOMATIC DATA PROCESSING86%
 PCPPRECISION CASTPARTS CORP.86%
 SHWSHERWIN-WILLIAMS CO86%
 SSLSASOL LIMITED (ADR)86%
 GWWW W GRAINGER INC86%
 NTESNETEASE, INC (ADR)86%
 COHCOACH INC86%
 CHRWC.H. ROBINSON WORLDWIDE, INC.86%
 JBHTJ B HUNT TRANSPORT SERVICES INC86%
 FDSFACTSET RESEARCH SYSTEMS INC.86%
 CLBCORE LABORATORIES N.V.86%
 ROLROLLINS, INC.86%
 FOSLFOSSIL GROUP INC86%
 BMABANCO MACRO SA (ADR)86%
 BKEBUCKLE INC86%
 EBIXEBIX INC86%
 WRLDWORLD ACCEPTANCE CORP.86%
 CPSICOMPUTER PROGRAMS & SYSTEMS, INC.86%
 NVONOVO NORDISK A/S (ADR)85%
 SAPSAP SE (ADR)85%
 INFYINFOSYS LTD ADR85%
 PAYXPAYCHEX, INC.85%
 VTKLYVTECH HOLDINGS LTD (ADR)85%
 FIZZNATIONAL BEVERAGE CORP.85%
 BRLIBIO-REFERENCE LABORATORIES INC85%
 UGUNITED-GUARDIAN, INC.85%
 BTIBRITISH AMERICAN TOBACCO PLC (ADR)82%
 COLROCKWELL COLLINS, INC.82%
 CPACOPA HOLDINGS, S.A.80%
 MLABMESA LABORATORIES, INC.80%
 MSFTMICROSOFT CORPORATION79%
 CHLCHINA MOBILE LTD. (ADR)79%
 LMTLOCKHEED MARTIN CORPORATION79%
 VFCVF CORP79%
 INTUINTUIT INC.79%
 AMTDTD AMERITRADE HOLDING CORP.79%
 GPSGAP INC79%
 CHKPCHECK POINT SOFTWARE TECHNOLOGIES LTD.79%
 GPCGENUINE PARTS COMPANY79%
 BBBYBED BATH & BEYOND INC.79%
 VARVARIAN MEDICAL SYSTEMS, INC.79%
 FFIVF5 NETWORKS, INC.79%
 TDCTERADATA CORPORATION79%
 JKHYJACK HENRY & ASSOCIATES, INC.79%
 DCIDONALDSON COMPANY, INC.79%
 URBNURBAN OUTFITTERS, INC.79%
 CPRTCOPART, INC.79%
 PRAAPRA GROUP INC79%

 

 

 

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Buffett Screener

Buffett Screener

Buffett Screener

Buffett Screener

Buffett Screener

Buffett Screener