In 2010 we released new features to help users locate the best value ideas. These features either make it easier to understand guru stock picks and portfolios, or find the kind of stocks that are undervalued and will typically perform better than the market.
These are the list of new features released in 2010. For previous released features, go to GuruFocus Knowlege Center
In order for users to better understand gurus’ stock picks and portfolios, GuruFocus has developed a flash chart to visualized gurus’ trading and holding activities. Here we use Warren Buffett’s equity portfolio at Berkshire Hathaway as the example to explain the features on the chart.
A Discounted Free Cash Flow Screener that meant to calculate the intrinsic values of all companies, and filter out the undervalued stocks.
THE FORMULA
Based on the 6 year free cash flow average, total equity and free cash flow growth assumptions, the following formula is applied
Value = (Growth Multiple)*FCF(6 year avg) + 0.8*Total Equity(most recent)
The free cash flow growth assumptions translate into the Growth multiple in the above formula. In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):
Value = (Growth Multiple)*FCF(6 year avg) + Total Equity(most recent)/0.8
Link: Discounted Free Cash Flow Screener
If you go to the stock picks of Warren Buffett, clicking on this row of data, an area appears underneath and the holding history of Warren Buffett with WFC is displayed. These are the highlight of the chart:
By looking at the history we can get a clear idea on how Warren Buffett likes WFC. He has been adding to WFC through the past 5 years, at the prices which are 10-20% higher than the current prices. Even as he needs cash for his BNI deals lately, he keeps his position with WFC firm, and adds to it whenever possible. The holding history clearly shows that WFC is his long term favorite and the trend now is to buy more WFC.
We have developed a new page which screens high quality companies sold at historical low P/S ratios. These companies have been very predictable in their business operations, their sales and earnings have consistently grown for at least the past decade. However the price/sales (P/S) ratios of these companies are less than 30% above their historical lows.
We have also developed a new page which screens high quality companies sold at historical low P/B ratios. These companies have been very predictable in their business operations, their sales and earnings have consistently grown for at least the past decade. However the price/book (P/B) ratios of these companies are less than 30% above their historical lows.
We created New Model Portfolios of Historical Low P/S Ratios and Historical Low P/B Ratios. One year has since passed. Over the year low P/S portfolio gained 20.1%, low P/B portfolio gained 17.4%. Each of them beat the S&P500 by more than 7% and 5%, respectively. The portfolio will be rebalanced during the New Year holiday based the close prices of today.
As always, feel free to give us comments and suggestions in the comment area below. In the mean time, if you are not a GuruFocus Premium Member, we invite you for a risk free 7-day trial. Why not? Take the advantages of Gurus’ best picks and proven value investing strategies, Try the Premium Membership.
These are the list of new features released in 2010. For previous released features, go to GuruFocus Knowlege Center
1. Visualized Guru Stock Picks and Portfolios with Flash Chart - Dec. 2010
In order for users to better understand gurus’ stock picks and portfolios, GuruFocus has developed a flash chart to visualized gurus’ trading and holding activities. Here we use Warren Buffett’s equity portfolio at Berkshire Hathaway as the example to explain the features on the chart.
- This chart displays up to 50 top holdings of the portfolio, the top buys and top sells during the past quarter.
- The top buys are the buys/adds among the top 50 holdings.
- The top sells are not necessarily in the top 50 holdings. Some of them have been complete eliminated.
- The x-axis is the market cap of the position
- The y-axis is the price change of the stock since the latest portfolio date. This is the end of the fiscal quarter of the firm.
- Each buy, sale, and holding is represented by a round bubble. The size of the bubble is proportional to the significance of the buy, sale or ownership.
- Green bubbles represent the positions gurus boughtduring the past quarter
- Red bubbles show that the position was reduced or sold outduring the past quarter
- Grey bubbles are the positions of the stocks that are held by the guruson the last day of the reported fiscal quarter.
- Along x-axis, the chart is divided into four areas: small cap, mid-cap, large cap, and mega cap.
- Move your mouse on the bubbles, you will see detailed information about this position:
- Number of shares owned on the portfolio date
- The change in the number of shares during the quarter.
- The weighting of the position in the complete portfolio when it is a holding (grey) bubble
- The impact to portfolio due to the buys/sales when it is a buy (green) or sale (red) bubble
- Clicks you can do:
- The legends are clickable. Click on each item in the legend will hide/show all the bubbles in the same color
- Each bubble is clickable. Click on the bubble with bring you to the page of the corresponding stock on GuruFocus.
- You can embed this chart into your own website by copying the embed code and post on your site. It is an"iframe”, resources are provided from GuruFocus.
2. Discounted Free Cash Flow Screener - June, 2010
A Discounted Free Cash Flow Screener that meant to calculate the intrinsic values of all companies, and filter out the undervalued stocks.
THE FORMULA
Based on the 6 year free cash flow average, total equity and free cash flow growth assumptions, the following formula is applied
Value = (Growth Multiple)*FCF(6 year avg) + 0.8*Total Equity(most recent)
The free cash flow growth assumptions translate into the Growth multiple in the above formula. In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):
Value = (Growth Multiple)*FCF(6 year avg) + Total Equity(most recent)/0.8
Link: Discounted Free Cash Flow Screener
3. Holding Histories of Gurus With Individual Positions - May 2010
If you go to the stock picks of Warren Buffett, clicking on this row of data, an area appears underneath and the holding history of Warren Buffett with WFC is displayed. These are the highlight of the chart:
- The chart shows the holding history of up to 5 years.
- All the prices and shares data are split adjusted.
- On the chart, the green line is the quarterly average price of the stock,
- The yellow bars show the number of shares Buffett owns at different quarters.
- On the right side table, only the quarters that have share number changes are shown
- The buy/sell price are compared with the current price
- At the bottom, the average paid price for WFC is compared with the current price. We can see that Buffett is still losing money with WFC, by about 11%.
By looking at the history we can get a clear idea on how Warren Buffett likes WFC. He has been adding to WFC through the past 5 years, at the prices which are 10-20% higher than the current prices. Even as he needs cash for his BNI deals lately, he keeps his position with WFC firm, and adds to it whenever possible. The holding history clearly shows that WFC is his long term favorite and the trend now is to buy more WFC.
4. Companies With Historical Low Price/Sales Ratios And Price/Book Ratios - Jan. 1, 2010
We have developed a new page which screens high quality companies sold at historical low P/S ratios. These companies have been very predictable in their business operations, their sales and earnings have consistently grown for at least the past decade. However the price/sales (P/S) ratios of these companies are less than 30% above their historical lows.
We have also developed a new page which screens high quality companies sold at historical low P/B ratios. These companies have been very predictable in their business operations, their sales and earnings have consistently grown for at least the past decade. However the price/book (P/B) ratios of these companies are less than 30% above their historical lows.
We created New Model Portfolios of Historical Low P/S Ratios and Historical Low P/B Ratios. One year has since passed. Over the year low P/S portfolio gained 20.1%, low P/B portfolio gained 17.4%. Each of them beat the S&P500 by more than 7% and 5%, respectively. The portfolio will be rebalanced during the New Year holiday based the close prices of today.
As always, feel free to give us comments and suggestions in the comment area below. In the mean time, if you are not a GuruFocus Premium Member, we invite you for a risk free 7-day trial. Why not? Take the advantages of Gurus’ best picks and proven value investing strategies, Try the Premium Membership.
