Benjamin Graham and Warren Buffett
In an article in ET, Dr Vikas V Gupta has explained the rigorous filter that he put the stocks through to identify the value stocks:Step 1: Filter out all companies with sales less than Rs 250 cr. Companies with sales lower than this are very small companies and might not have the business stability and access to finance that is required for a safe investment. This eliminates the basic business risk.Step 2: Filter out all companies with debt to equity greater than 30%. Companies with low leverage are safer.Step 3: Filter out all companies with interest coverage ratio of less than 4. Companies with high interest coverage ratio have a highly reduced bankruptcy risk.Step 4: Filter out all companies with ROE less than 15% since they are earning less than their cost of capital. High ROE companies have a robust business model, which generates increased earnings for the company typically.Step 5: Filter out all companies with PE ratio greater than 25 since they are too expensive even for a high-quality company. This enables us to pick companies which are relatively cheaper as against their actual value.He points out that applying these filters enables us to reduce and even eliminate a lot of fundamental risks while ensuring a robust business model, strong earning potential and a good buying price.After a detailed explanation of the entire methodology, Dr Vikas V Gupta explains that applying the strategy since 2003 delivered astounding returns with a CAGR of 29.1% and the money growing 20 times in 11 years!The 10 stocks that qualify under the Graham-Buffett formula are Zensar Technologies, Coal India Ltd, NMDC Ltd, Cairn India Ltd, V.S.T. Tillers Tractors Ltd, Tech Mahindra, Hexaware, Indraprastha Gas Ltd, Infosys Ltd, Engineers India LtdDr Vikas V Gupta explains that these 10 stocks illustrate that high quality companies with strong balance sheets also withstand the stringent Graham-Buffet screening process. He recommends that investors progressively form a portfolio having exposures to a few of these stocks for the current month after due diligence and having discussions with their trusted financial advisors.He has also recommended a maximum ceiling allocation of 5 per cent for any stock. An ideal portfolio should constitute about 20 stocks and not less than 10 stocks, he advices.
FAQs
Best Free Stock Screeners
- Zacks is the best free option for stock screeners. ...
- Finviz is an excellent stock screening platform, but there is a learning curve that traders must overcome. ...
- TradingView is another excellent option that traders can use before committing to a premium stock screener.
Screener Options
Some of the best free screeners on the web include those offered by Yahoo! Finance, StockFetcher, ChartMill, Zacks, Stock Rover, and Finviz. They all offer users a series of basic and advanced screeners. Many stock screeners offer both basic and advanced, or free and premium, services.
Is screener worth it? ›
The Bottom Line
The stock analysis tool, Screener.in, is a great tool. It's easy to use and comes with plenty of filters & options so that one can start analysing stocks based on only the name of their favourite company or industry/sector they know.
Do stock screeners work? ›
Stock screeners are powerful tools that allow investors to filter and analyze stocks based on specific criteria, streamlining the process of identifying investment opportunities. These platforms provide users with the ability to customize searches, leverage technical analysis tools, and access real-time data.
Who is the most accurate stock predictor? ›
1. AltIndex – Overall Most Accurate Stock Predictor with Claimed 72% Win Rate. From our research, AltIndex is the most accurate stock predictor to consider today. Unlike other predictor services, AltIndex doesn't rely on manual research or analysis.
What is the most accurate stock analysis? ›
A quick look at the best stock research websites
| Our pick | Best for | Pricing |
|---|
| TradingView | Charts and technical analysis | Primarily paid |
| Motley Fool | Paid stock recommendations | Paid |
| Morningstar | Mutual funds | Primarily free |
| Koyfin | Bloomberg terminal alternative | Paid |
3 more rowsMar 6, 2024
- Visit The Motley Fool. The Motley Fool review. ...
- Visit Morningstar. Morningstar review. ...
- Visit Seeking Alpha. Seeking Alpha review. ...
- Visit StockRover. StockRover review. ...
- Visit TradeStation. TradeStation review. ...
- Visit Zacks Trade. ...
- The Yahoo Finance stock screener has a clean and user-friendly design. ...
- Stansberry Research review.
"Warren Buffett was generally considered the greatest stock picker of all time.
How much does a stock screener cost? ›
The 8 Best Stock Screeners of June 2024
| Stock Screener | Free Version | Paid Version |
|---|
| Stock Rover | ✅ | $80 to $280 per year |
| Trade Ideas | ✅ | $999 to $1,999 per year |
| Benzinga Pro | ❌ | $324 to $1,404 per year |
| TradingView | ✅ | $180 per year |
3 more rowsJun 3, 2024
You'll quickly identify which stocks to buy, which to sell and target today's hottest industries. Gain full access to our powerful tools and resources locked behind Zacks Premium for 30 days absolutely free. Subscription: $249/year.
It is evident that stock prices cannot be accurately predicted. There is quite a bit of research that seeks to address that challenge, offering a variety of approaches to achieving the goal (Appel, 2005; Brown et al., 1998; El-Nagar et al., 2022; and Fromlet, 2001).
Which is the best site for stock analysis? ›
Here is a list of the best sites for stock market analysis:
- Morningstar, Inc. ...
- Seeking Alpha. ...
- Zacks Investment Research, Inc. ...
- Bloomberg. ...
- WallStreetZen. ...
- The Motley Fool. ...
- TradingView. ...
- Finviz.
Below, I share my insights into everything both have to offer, in what I believe is a balanced head-to-head comparison. For those looking for the short answer, TradingView is the ultimate victor. It's global data coverage, advanced charts, screening, and backtesting capabilities blow Finviz out of the water.
Is TradingView a good stock screener? ›
Their screener covers more than 100 different metrics, including both fundamental and technical data points. TradingView provides excellent charting capabilities, which is another plus for day traders tracking prices using technical analysis.
Which is the most successful stock indicator? ›
A guide to the 10 most popular trading indicators
- Moving Average Convergence Divergence (MACD) ...
- Fibonacci retracements. ...
- Stochastic oscillator. ...
- Bollinger bands. ...
- Relative Strength Index (RSI) Indicator. ...
- Average Directional Index (ADX) Indicator. ...
- Standard deviation indicator. ...
- Ichimoku cloud indicator.
