Warren Buffett Screen

The Warren Buffett screen looks for the financial footprint of a durable competitive advantage: five years of high returns on equity and invested capital, profit margins at least 20% above the industry average, and less debt than industry peers. A price-to-cash-flow discount to the industry adds a margin-of-safety check. The screen is inspired by Buffett's published investment principles; it is not an official Berkshire Hathaway method.