Friday, January 26, 2007

Investing Resource Review: Stock Screen - Warren Buffett Stock Screen

I collected a lot of stock screens this past year. Most use the free deluxe screener available at the MSN Money website. The screens are sometimes hard to find on the MSN website, so I thought I would share them.

This screen uses parameters which a young Warren Buffett might have looked at:

ROE: 5-year Avg. >= 17%

Return on Invested Capital: 5-year Avg. >= 17%

Pre-tax profit Margin: 5-year Avg. >= 1.2* Industry Avg. Pretax Margin: 5-year Avg.

Price/cash flow ratio <= 0.8* Industry Average price/cash flow ratio Price/cash flow ratio >=0.1

Debt to Equity Ratio <= 0.8*Industry Average Debt to Equity Ratio Screening Income per employee >= 1.1* Industry Average Income per employee

Here is a link to the MSN article by Harry Domash with a description of how and why the above parameters are used.

I like to add a Market Cap. field to the results so I can sort and see the mid- to small cap companies. I use this parameter to do so:

Market Cap - Display only


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Warren buffett is a great value investor.