Tags: Criteria | Buffett | Templeton | Lynch

Computer Thinks Like Buffett, Other Pros in Picking UK Stocks

By    |   Sunday, 12 October 2014 07:48 PM

Stockopedia, acting on behalf of The London Telegraph, utilized computer algorithms to choose U.K. stocks based on the methods of four legendary investors: Warren Buffett, Sir John Templeton, Peter Lynch and Benjamin Graham.

*As for Buffett, the program screened for long-term earnings growth, low debt, strong operating efficiency and high cash generation, The Telegraph reports. Among the U.K. stocks that fit the bill are Next, Majestic Wine, Dunelm, Admiral and Croda International.

*When it comes to Templeton, the algorithm screened for price-to-book and price-to-earnings ratios, earnings growth, profit margins and debt. Among the U.K. stocks that pass the test are Dragon Oil, J Sainsbury, Londonmetric Property, M P Evans and Millennium & Copthorne Hotels.

*Speaking of Lynch, the program screened for earnings growth, a reasonable price and a low price-to-earnings growth rate. U.K. stocks that made the grade include Cambria Automobiles, Dewhurst, Finsbury Food, IndigoVision and Matchtech.

Meanwhile, Buffett told CNBC Thursday that he bought stocks when the S&P 500 dropped 1.3 percent Wednesday. While he wouldn't say which stocks he purchased, Buffett did cite them as "names you'd recognize." 
 
Obviously the aim of the stock game is to buy low and sell high, and that's what Buffett tries to do. "The more [the market] goes down, the more I like to buy," he said.  
 
Trying to time the market precisely is often a "fool's game," Buffet asserts. Owning shares of U.S. companies in a variety of industries has placed investors in very good stead over the past 20 years, he said. "Particularly if you buy them over time. You can't lose."

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Stockopedia, acting on behalf of The London Telegraph, utilized computer algorithms to choose U.K. stocks based on the methods of four legendary investors: Warren Buffett, Sir John Templeton, Peter Lynch and Benjamin Graham.
Criteria, Buffett, Templeton, Lynch
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2014-48-12
Sunday, 12 October 2014 07:48 PM
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