Warren Buffett Model

Warren Buffett is America’s premier investor and consistently ranks among the world’s wealthiest people. Buffett has pioneered value investing from a deep value Graham and Dodd style to one embracing durable franchises at a reasonable price.

Our Warren Buffett Model uses sophisticated quantitative screening to select stocks based on the investment style employed by Buffett. With the help of Marc Gerstein, an expert on Buffett, quantitative analyst, and programmer we will manage a twenty stock portfolio based on our Warren Buffett model.

We believe that we offer a sober value and growth at a reasonable price liquid investment option for retirement plans and international investors seeking a thoughtful alternative to the S&P 500.

Warren Buffett Model annualized outperformance to S&P 500 is 8.87% per year.

Since January 1999 to June 2014:

  • Our Warren Buffett Model returned 657.91% versus 100.91% for SPY (S&P 500).
  • Annualized return of model 14.03% of S&P 500 ETF 4.87%.

Our Warren Buffett Model — through back tests — has significantly outperformed the S&P 500 and Berkshire Hathaway since 1999. We believe this provides investors with an ability to buy an actively managed portfolio.

Our model incorporates:

Three Important Buffett Investment Criteria:

  • Fair valuation.
  • Solid company fundamentals.
  • Reasonable consistency.

Several Quantitative Prerequisites:

  • Pass liquidity tests.
  • Market cap between of at least $250 million.
  • Industry does not exceed 25% of total portfolio.
  • Not be in an industry whose financial characteristics we deem incompatible with fundamental screening and ranking.
  • Meet various test relating to financial strength, return on capital and consistency of performance.

Target Two Qualitative Strategies:

  • Don’t lose money.
  • Buy durable franchises at a good price.

View our presentation on the Warren Buffett Model. Afterwards, please contact us for a personal consultation.