Warren Buffett Value Formula separates weak industries from strong ones.

Written by admin on Saturday, July 25th, 2009

Comments

By jhalas20 on July 25th, 2009 at 7:20 am

Alan, I like your …
Alan, I like your screen here. You’re right. It’s great for its simplicity. This screen will keep you from ever losing too much.

By MrAlanKendall on July 25th, 2009 at 7:20 am

Yes, this formula …
Yes, this formula is not exact, but it does filter out 99% of the companies that are overpriced or do not have a good enough return. It forces me to focus on the 1% of companies that are making a good profit and are low priced. I used to have a different formula but after using it for 2 years, adopted this one for its simplicity.

By tubebuffett on July 25th, 2009 at 7:20 am

Dude, you forgot …
Dude, you forgot the EPS and return on equity part. Warren buys companies by predicting the
EPS growth in ten years for an average P/e and not by book value. He has a calculation for intrinsic value based on EPS that is totally independant of book value.

 

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