Stock Criteria From Legend Investor - May be wrong!

Peter Lynch

Criteria	Metric	Recommended Value
Business Growth	Earnings Growth Rate	20% or higher annually
Valuation	Price-to-Earnings (P/E) Ratio	Generally below 20
Debt Levels	Debt-to-Equity Ratio	Below 1.0
Dividend Policy	Dividend Yield	1% or higher (preferably increasing)
Cash Flow	Free Cash Flow	Positive and consistent
Market Position	Market Capitalization	Focus on mid-cap stocks ($2B - $10B)
PEG Ratio	Price/Earnings to Growth (PEG)	Below 1.0
Understandability	Business Simplicity	Simple and easy to understand
Insider Ownership	Insider Buying	Significant insider ownership

Warrent Buffet

Criteria	Metric	Recommended Value
Business Quality	Economic Moat	Strong and sustainable
Revenue Growth	Revenue Growth Rate	10% or higher annually
Profitability	Return on Equity (ROE)	15% or higher
Valuation	Price-to-Earnings (P/E) Ratio	Below 20 or at least less than industry average
Debt Levels	Debt-to-Equity Ratio	Below 0.5
Dividend Policy	Dividend Yield	2% or higher (with a history of increases)
Cash Flow	Free Cash Flow	Positive and growing
Management Quality	Management Track Record	Proven and trustworthy
Market Position	Market Share	Leading in their industry

Charlie Munger

Criteria	Metric	Recommended Value
Business Quality	Economic Moat	Strong and durable
Profitability	Return on Equity (ROE)	15% or higher
Valuation	Price-to-Earnings (P/E) Ratio	Generally below 20
Debt Levels	Debt-to-Equity Ratio	Below 0.5
Cash Flow	Free Cash Flow	Consistently positive and growing
Growth Potential	Earnings Growth Rate	10% or higher over the long term
Management Quality	Management Track Record	Highly reputable and capable
Market Position	Competitive Advantage	Clear and sustainable
Price-to-Book Ratio	Price-to-Book Ratio	Below 1.5

LKH

Criteria	Metric	Recommended Value
Business Quality	Competitive Advantage	Strong and sustainable
Valuation	Price-to-Earnings (P/E) Ratio	Below 15 or lower than industry average
Price-to-Book (P/B) Ratio	Price-to-Book Ratio	Below 1.0
Earnings Growth	Earnings Growth Rate	Consistent double-digit growth
Debt Levels	Debt-to-Equity Ratio	Below 1.0 or manageable
Cash Flow	Free Cash Flow	Positive and growing
Dividend Policy	Dividend Yield	Preferably above 2%
Management Quality	Management Track Record	Proven track record and integrity
Margin of Safety	Intrinsic Value	At least 30% below intrinsic value

Benjamin Graham

Criteria	Metric	Recommended Value
Valuation	Price-to-Earnings (P/E) Ratio	Below 15
Margin of Safety	Intrinsic Value	At least 30% below intrinsic value
Asset Value	Price-to-Book (P/B) Ratio	Below 1.0
Earnings Stability	Earnings Per Share (EPS) Growth	Consistent over the past 5-10 years
Dividend Policy	Dividend Yield	2% or higher (with a history of payments)
Debt Levels	Debt-to-Equity Ratio	Below 1.0
Current Ratio	Current Ratio	Above 1.5
Net Current Assets	Net Current Assets per Share	Positive
Investment Diversification	Diversification Strategy	Diversified portfolio across sectors

Ray Dalio

Criteria	Metric	Recommended Value
Economic Moat	Competitive Advantage	Strong and sustainable
Valuation	Price-to-Earnings (P/E) Ratio	Generally below 15-20
Diversification	Asset Allocation	Broad diversification across asset classes
Debt Levels	Debt-to-Equity Ratio	Below 1.0 or manageable
Growth Potential	Earnings Growth Rate	10% or higher over the next few years
Market Trends	Economic Indicators	Favorable macroeconomic conditions
Risk Assessment	Value-at-Risk (VaR)	Acceptable risk level based on investor’s profile
Free Cash Flow	Free Cash Flow	Positive and consistently growing
Management Quality	Management Track Record	Proven experience and good reputation
Correlation	Asset Correlation	Low correlation with other assets for diversification

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