Legendary investors.
Every stock on Stockb2ok is evaluated against 11 proven fundamental strategies, grouped by investment style.
BENJAMIN GRAHAM
a British-born American investor and the “father of value investing,” widely regarded as one of the founders of modern security analysis. His approach focused on fundamental analysis, intrinsic value, financial strength, valuation, and a margin of safety.
Some of the criteria he looked for:
- P/E ratio of 9.0 or less
- Current ratio great than 2
- Price-to-book value ratio less than 1.2
WARREN BUFFETT
an American value investor and one of Benjamin Graham's most prominent students. His investment approach evolved from Graham's value principles toward high-quality businesses with strong returns on capital, durable competitive advantages, financial strength, and attractive long-term economics.
Some of the criteria of his approach:
- ROE and ROTC greater than 12%
- Long-term debt less than 5 times net income
- Pre-tax profit margin greater than or equal to 12%
JOHN NEFF
an American value and contrarian investor.
Some of the criteria used in the framework:
- 1-year EPS growth greater than 6%
- Positive free cash flow per share
- Average 5-year sales growth greater than 70% of average 5-year EPS growth
DAVID DREMAN
a Canadian-born American investor known for his contrarian value approach.
Some of the criteria used in the framework:
- Price-to-Cash Flow ratio below 7.14
- Low price-to-book and price-to-cash-flow
- Price-to-Book Value ratio below 1.13
JOHN TEMPLETON
an American-born British investor and a student of Benjamin Graham.
Some of the criteria used in the framework:
- Total debt-to-EBITDA less than 3
- EPS growth positive over the last year and the last 5 years
- Operating margin positive and above the industry average
PHILIP FISHER
an American investor and pioneer of growth investing.
Some of the criteria used in the framework:
- 3-year sales growth greater than or equal to the industry median
- PEG ratio greater than 0.1 and less than or equal to 0.5
- R&D spending and sales growth are increasing
T. ROWE PRICE
an American investor and pioneer of growth investing.
Some of the criteria he looked for:
- Return on Invested Capital greater than 10%
- 3-year, 5-year, and 7-year EPS growth greater than 5%
- Cash flow over the last 12 months greater than zero
JIM SLATER
a British investor and pioneer of growth-at-a-reasonable-price investing.
Some of the criteria used in the framework:
- PEG ratio less than or equal to 0.75
- Debt-to-equity ratio less than or equal to 0.5
- EPS growth greater than 20%
PETER LYNCH
an American investor
Some of the criteria he looked for:
- Debt-to-equity ratio between 0.2 and 0.5
- PEG ratio that is reasonable relative to growth
- Positive dividend rate
QUALITY INVESTING
an approach with roots in Benjamin Graham’s analysis, focusing on company quality, financial strength, governance, and valuation.
Criteria:
- Market Positioning. The company operates in an industry that offers certain growth potential and has global trends as tailwinds.
- Corporate Governance. Its corporate governance structure is transparent, plausible, and accordingly organized.
- Financial Strength: solid balance sheet, high capital, sales profitability, and ability to generate ample cash flows.
JOEL GREENBLATT
an American value investor and the creator of the Magic Formula investment approach.
Some of the criteria used in the framework:
- Return on Assets (ROA) greater than 25%
- Return on Capital (ROC) greater than 25%
- Exclude utilities and financial stocks