Guru Stock Screen of the Week: In Search of Top Scoring Buffett-like Stocks

Berkshire Hathaway recently disclosed that it purchased $1 billion of Apple stock, which deviates from Buffett’s typical mentality to avoid technology stocks because he doesn’t understand them. The Apple purchase was made by Berkshire portfolio managers Todd Combs and Ted Weschler, who make investments of $1 billion or less, not by Buffett himself, so it could be an indication of an easing of some of his typical investment restrictions. Aside from being a technology stock, Apple actually has many of the fundamental characteristics Buffett looks for in his investments, including consistent earnings growth and high return on equity and total […]

Good Strategies Look Beyond Earnings

Whether it’s talk about earnings growth or earnings estimates or price/earnings ratios, stock market news is usually filled with discussions of corporate earnings. But in his latest for Seeking Alpha, Validea CEO John P. Reese says that good investing goes beyond looking at earnings-related metrics. “Earnings don’t always tell the whole story,” Reese writes.  “In fact, oftentimes other metrics can provide an even better gauge of how a company or the market is doing. The Price/Sales Investor strategy I track on Validea.com is a good example. The key variable it looks at is the price/sales ratio – PSR – which […]