Click here to get a PDF of this post

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 Investing System