Those who join Microsoft (MSFT), Alphabet (GOOGL) and Meta platform (FB) (formerly known as Facebook) This list of Warren Buffett stocks based on the investment strategy of the CEO of Berkshire Hathaway?
In addition to GOOGL, FB and MSFT stocks, Boot barn (BOOT) and steel stock Nukor (NUE), Steel dynamics (STLD) and Reliance Steel and Aluminum (RS) is one of the 30 names displayed on this stock screen.
In addition to boot burn, fellow retailers Sprouts Farmers Market (SFM), Five down (Five) and 1-800Flowers.com (FLWS) has secured shelf space.
Home builder DR Horton (DHI), Green Brick Partner (GRBK), Pulte group (PhM), and Tri Point Homes (TPH) decking materials join the firm Trex (TREX) list.
Technology stocks have been criticized in recent months, Monolithic power system (MPWR) and EPAM system (EPAM) maintains placements on this screen for Microsoft and Meta platforms as well as Warren Buffett stocks.
With their track record of sustainable growth, Microsoft, Monolithic Power Systems and GOOGL stock IBD have earned a place among the long-term leaders, matching many of the parameters of Warren Buffett stock.
Since Omaha Oracle has not written a book detailing its investment strategy, there is no specific purchase checklist. But parts of his stock-picking strategy can be gleaned from the annual report Berkshire Hathaway (BRKB).
Highlight Warren Buffett stock
The list below highlights Warren Buffett stocks such as Microsoft, Alphabet, Nucor and Steel Dynamics that are consistent with his focus on management quality and long-term growth.
Looking closely at the closely watched Berkshire Hathaway portfolio, Buffett and his team emerge from the drug maker. Mark (MRK) and slashed holding in AbbVie (ABBV) and Bristol Myers Squibb (BMY).
In Q4, Berkshire Hathaway bought shares of Video Games and Sport Leader Activation Blizzard (ATVI) for the first time.
Created in MarketSmith, the screen below emphasizes the metrics to use when looking for companies with long-term past and potential future growth. To make a list, each stock must meet a wide range of criteria, including:
- The top 25% of all stocks in terms of five-year annual EPS growth rate.
- 15% or more sustainable income growth.
- 12% or better 5 year average return on equity.
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Warren Buffett Stocks: Marketsmith Screen
The screen was created using Marketsmith | Data until May 20, 2022
|Institution||Symbol||Sustainable Growth%||ROE 5-year average||Low rating||EPS rating||RS rating||SMR rating|
|Steel Dynamics Inc.||STLD||59||30.3||98||98||94||A|
|Williams Sonoma Inc.||WSM||56||40.5||45||96||24||A|
|Dako New Energy Corporation Advertisement||DQ||52||17||86||98||62||A|
|Boot Burn Holdings Inc.||Boots||38||19.6||72||99||57||A|
|Trex Company Inc.||TREX||38||34.2||66||98||18||A|
|Service Corporation Intal||SCI||34||29.5||90||83||93||A|
|Meta Platforms Inc Cl A||FB||31||25.2||44||73||25||B|
|Winnebago Industries Inc.||WGO||30||22.9||59||96||23||A|
|DR Horton Inc||DHI||29||22.9||67||99||28||A|
|Alphabet Inc Cl A||GOOGL||29||20.3||69||94||42||A|
|West Pharmaceutical Svcs||WST||29||20.6||68||94||30||A|
|Ink below five||Five||28||19.7||55||90||21||A|
|One-800Flowers.com Cl A||FLWS||27||18.2||20||60||8||C|
|Sprouts Farmers Market||SFM||27||27||75||82||51||D|
|Green Brick Partners Inc.||GRBK||25||16.6||93||99||73||A|
|Houlihan Lokey Inc Cl A||HLI||25||28.3||63||3||51||B|
|Pulte Group Inc.||PhM||25||21.4||82||98||40||A|
|Epam Systems Inc.||EPAM||24||20||78||98||19||A|
|Monolithic power system||MPWR||23||25.8||92||98||69||A|
|Atlas Air Worldwide Hldg||AAWW||22||14.4||67||95||49||A|
|Reliance steel and aluminum||RS||22||15.5||96||98||91||A|
|TriPoint Homes Inc.||TPH||20||14.4||75||95||51||B|
|Axon Enterprise Inc||AXON||17||12.9||52||90||21||A|
Potential Oracle rating of Omaha stock
Steel Dynamics, for example, scores a 98 composite rating while Warren Buffett scores a composite rating, while Nuco achieves a 95 when using criteria different from those used for this list of stocks. The 92 rating of the monolithic power system means it has surpassed 92% of all companies in terms. Key Stock Sorting Features.
Following a fall in earnings earlier this month, the FB stock has dropped to a composite rating of 44 in the stock checkup. GOOGL stock has dropped to a 69 rating.
Many companies on the list, including FB stock, meet the general Warren Buffett criteria, but some do not meet the benchmarks that SLIM investors typically look for in other IBD SmartSelect ratings that measure a company’s basic, as well as technical, strength.
From 1 (worst) to 99 (best), composite ratings reveal how firmly a company is showing the seven tailtail features of a stock win. For example, a 95 rating means that the company exceeds 95% of all other stocks in terms of the most important fundamental and technical stock selection criteria.
The EPS rating tracks a company’s annual and quarterly earnings growth, then measures how its number stacks up compared to all other stocks. So like the composite rating, a score of 95 means the company’s EPS growth is in the top 5% of all stocks.
Identifies stocks with strong fundamentals, SMR rating tracks sales growth, profit margins and returns on equity as a whole. An A rating means that the company is in the top 20% of all stocks in terms of that core performance metrics. As this relates to the legendary investor’s focus on the fundamentals of a company, it can be a particularly effective rating for potential investors looking for Warren Buffett stocks.
Follow Matthew Galgani on Twitter @IBD_MGalgani.
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