- Above Average Company
- 20%+ ROE. Five years+ indicates likely competitive advantage
- Note: the avg company has an ROE of 11%
- Price
- We want to pay a fair price, not an unreasonable multiple the market is willing to pay
- P/E < 15
- P/B < 1.5
- Margin of Safety
- Current ratio > 2
- Total debt to equity in the most recent quarter < 50Margin of Safety
- Psychology
- Recency Bias
- Opportunities for confirmation bias
Monday 6 June 2011
Value Investor's Stock Screener
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