Warren Buffett

The Oracle of Omaha

1965 - present

Buy wonderful companies at fair prices and hold them forever. This scorecard applies Buffett-inspired financial heuristics - 14 quantitative rules-of-thumb covering gross margins, SG&A discipline, debt levels, return on equity, earnings consistency, and owner-earnings quality.

Investment Approach

1Gross margin above 40% signals pricing power and a durable moat
2SG&A, R&D and depreciation below threshold percentages of gross profit
3Interest expense below 15% of operating income - low debt reliance
4Consistent EPS growth and rising retained earnings over 5 years
5Debt payable within 4 years of net income, low or no preferred stock
6Return on equity above 15% sustained across multiple years
7CAPEX below 50% of net income - not a capital-hungry business

14-Rule Scorecard

1Gross margin > 40%

2SG&A < 30% of gross profit

3R&D < 30% of gross profit

4Depreciation < 15% of gross profit

5Interest < 15% of operating income

6Effective tax rate consistency

7Net income margin > 20%

8EPS growth positive (5-year trend)

9Cash exceeds debt

10Debt/equity < 0.8

11No preferred stock outstanding

12Retained earnings growing consistently

13No dilutive share issuance (treasury shares)

14CAPEX < 50% of net income

Criteria derived from Warren Buffett's published writings and investment principles.

Top 10 UK Equities - Warren Buffett Strategy

Ranked by Buffett 14-rule scorecard. Stocks passing the most financial-quality tests score highest.

#	Ticker	Company	Sector	Mkt Cap	Passes	Score	Verdict
1	RMV	Rightmove PLC	Interactive Media & Services	$4.8bn	13/14	100.0	Strong candidate
2	PAFR	Pan African Resources PLC	Gold	$3.7bn	12/14	99.6	Strong candidate
3	AUTOA	Autotrader Group PLC	Interactive Media & Services	$5.2bn	11/14	99.3	Strong candidate
4	CKN	Clarkson PLC	Marine Transportation	$2.1bn	11/14	98.9	Strong candidate
5	BYIT	Bytes Technology Group PLC	Application Software	$1.3bn	11/14	98.6	Strong candidate
6	GAW	Games Workshop Group PLC	Leisure Products	$7.3bn	11/14	98.2	Strong candidate
7	IHG	InterContinental Hotels Group PLC	Hotels, Resorts & Cruise Lines	$23.5bn	11/14	97.8	Strong candidate
8	MGNS	Morgan Sindall Group PLC	Construction & Engineering	$2.5bn	10/14	97.5	Watchlist
9	MONY	Mony Group PLC	Interactive Media & Services	$1.3bn	10/14	97.1	Watchlist
10	KLR	Keller Group PLC	Construction & Engineering	$2.8bn	10/14	96.8	Watchlist

RMV

Rightmove PLC

100.0

Interactive Media & Services|$4.8bn

Passes

13/14

Strong candidate

PAFR

Pan African Resources PLC

99.6

Gold|$3.7bn

Passes

12/14

Strong candidate

AUTOA

Autotrader Group PLC

99.3

Interactive Media & Services|$5.2bn

Passes

11/14

Strong candidate

CKN

Clarkson PLC

98.9

Marine Transportation|$2.1bn

Passes

11/14

Strong candidate

BYIT

Bytes Technology Group PLC

98.6

Application Software|$1.3bn

Passes

11/14

Strong candidate

GAW

Games Workshop Group PLC

98.2

Leisure Products|$7.3bn

Passes

11/14

Strong candidate

IHG

InterContinental Hotels Group PLC

97.8

Hotels, Resorts & Cruise Lines|$23.5bn

Passes

11/14

Strong candidate

MGNS

Morgan Sindall Group PLC

97.5

Construction & Engineering|$2.5bn

Passes

10/14

Watchlist

MONY

Mony Group PLC

97.1

Interactive Media & Services|$1.3bn

Passes

10/14

Watchlist

KLR

Keller Group PLC

96.8

Construction & Engineering|$2.8bn

Passes

10/14

Watchlist

Disclaimer

This page applies Warren Buffett's documented investment philosophy to UK-listed equities. Rankings and scores are illustrative and do not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.

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