|Designer ||mgerstein ||Subs || 95 |
|Launch ||02/01/13 ||Cost ||FREE |
|Rebalance ||01/12/15 |
| Last viewed by Designer || Today |
This is a model inspired by the philosophy of Warren Buffett. While much of what he actually does is based on his personal skill and judgment and cannot be replicated in a model, we can and have built a model that is guided by three important ideas that characterize his approach: fair valuation, solid company fundamentals and reasonable consistency. The portfolio holds approximately 20 stocks and is rebalanced every four weeks.To be eligible for consideration, stocks must pass these conditions:
- Pass liquidity tests
- Market cap between of at least $250M
- Industry does not exceed 25% of total
- Not be in an industry whose financial characteristics we deem incompatible with fundamental screening and ranking
- Meet various test relating to financial strength, return on capital and consistency of performance.
The top ranked stocks are picked using a ranking system based on valuation, growth and earnings quality.