September 17, 2021

Warren Buffett Stock Screener Settings

Warren Buffett Stock Screener Settings

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Warren Buffett is one of the greatest investors, stock pickers, and CEOs of our time.

There are some intangible things he looks for that you can’t put in a stock screener.

  • When buying a stock he sees it as buying a business and he wants to buy future consistent cash flows for a discounted price.
  • He wants the company to have high quality management and a competitive edge that is not easy to reproduce.
  • He wants a company with a business that has a high barrier to entry for new competitors. 
  • The ability of a company to both maintain and grow earnings and dividends without the help of debt.
  • A company that has a type of monopoly with their technology, business model, or brand strength. 
  • Pricing strength that can keep up with inflation.

There are also some quantifiable fundamentals that you can put in a stock screener from Mary Buffett’s book Buffetology.

  • Market Capitalization is >= $300 million U.S. 
  • Current Operating Margin % is >= industry’s current median.
  • Current Net Margin % is >= industry’s current median.
  • 3 year earnings per share growth % from operations is >= 7 year earnings per share growth % from operations.
  • Latest filing return on equity % is > 12%.
  • 7 year average return on equity % is > 12%.
  • Long term debt < 5x earnings.
  • Take the top 50 stocks with the highest 7 year earnings per sales growth % from operations.

This stock screen can help you find stocks that even Warren Buffett would buy and hold, hopefully forever, if their fundamentals don’t change. 

Warren Buffett Stock Screener Settings