It’s been a while, I know. So how about an explanation of why this site has remained in a static state for almost a year.
It all comes down to cost. The Buffett Score’s data provider changed how much things cost, and when you’re trying to process the data for 6,000+ equities, the pricing soon explodes. Without much free time due to switching jobs, finding a new data source became an endeavor that was pushed to the wayside.
We’re back now though! There’s a new data source, things are running smoothly, and quicker. It used to take ~9hr to process 6,000 stocks (tech people, I did them one at a time, I’m not a smart cookie). Now, that time is down to around 2hr. I can start the process and have it done in the evening, so that’s fantastic.
Changes to the Buffett Score
There has been a tweak since the last time we ran things and we’ll now have eight instead of nine criteria.
The “expected rate of return over 12%” score was rather ambiguous. It was calculated in a number of different ways, and was not consistent from equity to equity. Luckily, with all the other scores taking a hit in some form, this still results in us having less stocks on the list than the same time last year.
Everything else will be the same!
How Did The Buffett Score Perform?
One great thing about waiting so long between updates is that we can look back and see exactly how the Buffett Score performed over the last year.
It’s been a pretty rough year for equities, so I wasn’t expecting massive gains. Well, guess what?! There were no massive gains.
If you bought $1,000 in every perfect Buffett Score equity on November 1st, 2021 you’d have spent $111,000. Today, you’d have ~$98,500, a roughly 11% decrease (not accounting for any dividends).
The S&P over the same period is down 14%, so The Buffett Score carried 3% of alpha during the period. Not bad, but obviously still losing money with this blanket approach.
Cherry picking some names here…
- Apple was on the list and is flat during the period
- Adobe got crushed. Down from ~$640 per share to around $340 at the time of writing.
- The biggest gainer is VALU, going from $34.50 per share to around $63.50 today. Your $1000 would be worth $1800+ if you’d have bought in here.
- The biggest loser was META (Facebook) that traded for $329 at the beginning of the period and is down to $113 today. Yikes!
What’s Next
We will be back to our regularly scheduled programming going forward (updates around the first of every month). Please share BuffettScore.com with people you think might be interested.
I’d love to hear feedback on improvements or things you’d like to see from the service too. If you have an idea for an additional criteria, or even an entirely new book/score to create, let me know.