- by Soumili Roy
- 02nd Sep 2020
Top 10 Stocks To Witness On The Basis Of Warren Buffett's Investment Layout
Following are the stocks having market capitalization greater than Rs 500 crore and Average Rupee Volume greater than 10,000 crores are considered to filter stocks for the list.
Warren Buffett, the iconic investor, celebrated his 90th birthday on the 30th of August. Sincerely glimpsing at his life in the rearview mirror, he has been the most gigantic encouragement for most of the value investors.
Also, the chairman of Berkshire Hathaway Inc. Warren Buffett is one of the many prosperous investors with a net worth of $82 billion, as on August 30, 2020, in accordance to Forbes.
As of now, he is one of the few billionaires who has promised to donate 99% of his wealth, as the information by media reports.
With his endless learnings, his letters to shareholders have been a guide to value investing.
Nevertheless, Warren Buffett’s criteria before you pick any stock which would make them investment-worthy is –
a) They must earn a good return on capital,
b) they must be run by able and honest managers, and
c) they must be available at a sensible price.
Warren Buffett, a former student of Benjamin Graham. He emphasizes on stocks that are trading at reasonable prices.
Applying similar principles to Indian markets if we require to select stocks how can one make that judgment? Principally, to make the job more convenient for investors in picking stocks conforming to the worths of Buffett, we have assessed data from MarketSmith powered by William O'Neil.
However, the following stocks had been filtered with the highest Master Score and RS (Relative Strength) rating. Also, master Score is a proprietary filter formed by MarketSmith which highlights enormous earnings potential and healthy price performance of a stock.
Be that as it may, RS rating is one technical tool which is the most admired way to envisage the market’s top performers. The Relative Strength rating, however, is the outcome of evaluating a stock’s percentage price variation over the last 12 months.
Additionally, a 40 percent weight is shouldered on the latest three-month period; the remaining three quarters each acquired 20 percent weight. Each and every stock is arranged in order of greatest price percentage variation and assigned a percentile rank from 99 (highest) to 1 (lowest).
Having the filter applied to surveying for companies with long-term past and potential future growth; the stocks returned by the screen, and Buffett most likely would have emphasized on those trading at reasonable prices.
Nonetheless, the stocks having a market capitalisation greater than Rs 500 crore and Average Rupee Volume greater than 10,000 crores are considered to filter stocks for the list as of current events.
Following are the 10 stocks, on the report of the above-mentioned parameters, that one should glance at (they are filtered based on Market Score). In addition to that, the stocks having market capitalization greater than Rs 500 crore and Average Rupee Volume greater than 10,000 crores have been considered to filter stocks for the list:
- Marksans Pharma: Master Score 78
- Navin Fluorine: Master Score 77
- Britannia Industries: Master Score 76
- JB Chemicals: Master Score 76
- Poly Medicure: Master Score 76
- Alkl Amines Chemicals: Master Score 76
- Abbott India: Master Score 75
- Amruntanjan Healthcare: Master Score 74
- Vaibhav Global: Master Score 74
- Paushak: Master Score 73