As I have discussed in previous posts – my normal stock screens have been coming up mostly empty of late. A Shiller PE over 26 will do that – so I needed a better screen to find trade candidates. Enter my Buffett Picks Screen.
This screen is a trade off between value and superior management. Or in Buffett speak – finding great companies at a good price (as opposed to finding good companies at a great price).
Here are the results – note that I already made a trade in GILD:
| Ticker | Price | Fair Value | Margin of Safety | Yield % |
| GILD | $85.70 | 124 | $38.30 | 2.0% |
| USB | $41.47 | 52 | $10.53 | 2.4% |
| CMP | $74.95 | 89 | $14.05 | 3.6% |
| BRK.B | $143.87 | 170 | $26.13 | 0.0% |
| MMP | $70.51 | 76 | $5.49 | 4.3% |
Click on the links to research further. I think you will find out why I found GILD so compelling – even though it looks like I was early to the trade. Ironically – Berkshire Hathaway also made the screen!
Results are based on the following screen:
- Fair value uncertainty <= medium.
- Wide moat.
- Morningstar rating 4 or more stars.
- Financial Health Grade >= B.
- Current P/E <= 20.
- Morningstar Stewardship Rating = Exemplary
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