Interesting. I use screens a lot but not in the way you are describing people use it. I have a simple set up to identify certain valuation metrics. The actual investment decisions is made after extensive reading of financial reports though. Screens are used to see what is moving and why.
While screeners might not uncover hidden gems, the financial data they provide can be used as a tool to confirm the valuation of a stock once a potential investment has been identified through deeper analysis
The other point to note is that CM’s performance is midtable as a value investor. WB and BG too. We now live in the tech age where screeners can find stocks these gents could never. They were pioneering for their time but we have moved on and evolved. We can choose better stocks and we can get better results.
Really good post! To be honest, using screeners I’ve never found opportunities that I had not heard about before from publications, podcasts, etc.
Thanks Alberto!
Interesting. I use screens a lot but not in the way you are describing people use it. I have a simple set up to identify certain valuation metrics. The actual investment decisions is made after extensive reading of financial reports though. Screens are used to see what is moving and why.
While screeners might not uncover hidden gems, the financial data they provide can be used as a tool to confirm the valuation of a stock once a potential investment has been identified through deeper analysis
Spot on…they have been used effectively for decades
The other point to note is that CM’s performance is midtable as a value investor. WB and BG too. We now live in the tech age where screeners can find stocks these gents could never. They were pioneering for their time but we have moved on and evolved. We can choose better stocks and we can get better results.
Screeners work great for me…couldn’t imagine trading without them