14 January 2017
Warren Buffet uses these five investment criteria
It is well known that Warren Buffet uses these five investment criteria:
Free cash flow net income after taxes, plus depreciation and amortization, less capital expenditures) of at least $250 million.
Net profit margin of 15% or more.
Return on equity > of at least 15% for each of the past three years and the most recent quarter.
A dollar's worth of retained earnings creating at least a dollar's worth of shareholder value over the past five years.
Ample liquidity. Only stocks with a market capitalization of at least $500 million are included.
Free cash flow net income after taxes, plus depreciation and amortization, less capital expenditures) of at least $250 million.
Net profit margin of 15% or more.
Return on equity > of at least 15% for each of the past three years and the most recent quarter.
A dollar's worth of retained earnings creating at least a dollar's worth of shareholder value over the past five years.
Ample liquidity. Only stocks with a market capitalization of at least $500 million are included.
Labels: Stock Trading System, Warren Buffett
