The idea behind this was to see if I could come up with a screen that included the characteristics of a great company and backtested well. So what are these characteristics? High returns on capital. High margins. Consistently generate free cash flow. Not too much debt. Stable revenues with either growth or at worse small declines (yes even the best companies … [Read more...]
Stock Screens
Articles and posts are Stock Screens and outputs can be found here. Feel free to use the output to find potential investment opportunities!
Top 50 Magic Formula Stocks
One very popular screen is Joel Greenblatt’s ‘Magic Formula’ which he talks about in his best selling book “The Little Book that Beats the Market”. This screen is a ranking system using ‘return on capital’ and ‘earnings yield’. Using Greenblatt’s definitions I re-created the screen. For specifics regarding the calculations please scroll to the bottom of the post. The 50 top … [Read more...]
Growing Global Dividend Aristocrats
Investors love dividends. Especially when they are growing, sustainable and consistent. I screened over 70,000 stocks to find which ones had the following characteristics: Paid a dividend every year for the last 10 years. The dividend grew in each of the last 5 years. The dividend payout ratio was less than 100%. This means that the company is paying a dividend … [Read more...]
Best Companies Screen That Beats The Market
The idea behind this was to see if I could come up with a screen that included the characteristics of a great company and backtested well. So what are these characteristics? High returns on capital. High margins. Consistently generate free cash flow. Not too much debt. Stable revenues with either growth or at worse small declines (yes even the best companies … [Read more...]
John Neff screen gives 2 interesting stocks
Not as well known as some other value investors, John Neff had one of the best track records known in the investment world with an annual 13.7% return vs 10.6% for the S&P 500 over 31 years. Windsor which he managed became the largest mutual fund in existence during Neff's management. Neff retired from Vanguard in 1995. Neff wrote "John Neff on Investing" which was … [Read more...]
Benjamin Graham Screen Gives These 6 stocks
In John Reese's book "The Guru Investor", he shows a stock screen based on Benjamin Graham's philosophies. A backtest of the screen produced a 20% return versus 4% for the S&P 500 over the 2003-2008 period. The screen rules are: All stocks except technology Sales > $340 million Current ration > 2 (less than 2 only if its a utility or telecom) Long-term … [Read more...]
This Magic Formula Stock is Up 15%+ Pre-Open!
I'm a fan of using screens to scan the universe for opportunities. One very popular screen is Joel Greenblatt's 'Magic Formula' which he talks about in his best selling book "The Little Book that Beats the Market". Express Scripts (ESRX) is one of the stocks given by the screen and is up more than 15% before the market opens today. This is because it was just announced that … [Read more...]
