Buffett Criteria Turned Upside Down?

[mrfixituk]

All the books I read and web sites on fundemental analysis always focuses on going long, but what criteria would you use for finding the worst performing companies? When the markets in a bull run I still prefer to go long, but in a bear short so it's always best to have all bases covered!

 

[timsk]

All the books I read and web sites on fundemental analysis always focuses on going long, but what criteria would you use for finding the worst performing companies? When the markets in a bull run I still prefer to go long, but in a bear short so it's always best to have all bases covered!

Hi mrfixituk,
The answer to your question rather depends upon your modus operandi. If you're primarily an investor, you'll probably use fundamental analysis as your primary tool. In which case, you'll look for companies with very poor cash flow, loads of debt, weak EPS, PEG and poor ROCE etc. Conversely, if you're a trader, you'll probably look at charts and filter companies near all time lows, beneath key moving averages (200, 100 and 50) and in a sustained downtrend etc.
Tim.