Buffett: Owner Earnings Yield
Buys on Buffett’s pricing discipline: a good business is only a buy when the cash the owner could actually withdraw yields a decent return on the purchase price. The measure is free cash flow over the last four quarters: it has to be positive and worth at least 5 percent of market cap — so the market values the company at no more than twenty times that cash. On top comes the quality baseline: at least 15 percent return on equity, at least 10 percent of revenue as operating profit, and debt of no more than half of equity. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. New positions are added once a month; a stock is sold as soon as it no longer meets one of these conditions or is no longer rated green.
This portfolio buys shares.
- Performance
- −0.18%
- Lead over QQQ
- −1.04%
- Largest drawdown
- −1.42%
- Win rate
- —
- Cash ratio
- 80.1%
- Portfolio value
- $99,816
Performance against the yardsticks
What the portfolio holds
| Stock | Shares | Entry | Price | Value | Share |
|---|---|---|---|---|---|
| DECK | 204.71 | $97.70 | $96.90 | $19,836 | 19.9% |
| Cash | — | — | — | $79,980 | 80.1% |
The rules of this portfolio
- Buys
- once a month
- Sells
- checked every trading day: rating turned red, stop-loss hit, holding period over, or the stock dropped out of the selection.
Every trade with its reason
The complete history of this portfolio, most recent trade first. It is never truncated — it doubles as the recommendation history required by Art. 4(1)(i) of Delegated Regulation (EU) 2016/958.
| Date | Stock | Action | Shares | Price | Reason |
|---|---|---|---|---|---|
| 07/27/2026 | DECK | Buy | 204.71 | $97.70 | Newly selected |