The Best Of The 735 CCC Companies - With And Without Yield As A Consideration
Summary
"Best" is a relative term and different for all of us.
I developed a system to identify the best companies in David Fish's All CCC list.
I use that system to identify the best 25, 50 or 100 companies before filtering for specific value, risk and expected future performance criteria.
What performance characteristics do I want when looking for a stock to buy, and in what order of priority:
Excellent overall performer - the cream of the crop, based on an overall, balanced, multi-faceted, stock performance ranking system(s)Good valueGood expected future performanceLow risk.Most SA readers will have their own prioritized list.
My approach to meeting each of my 4 requirements will be simple. Each SA reader will have her/his own approach, which could be even simpler or more complex.
To meet number 1 above, I will use 2 criteria: first, they must be a CCC company and second they must be in the top 15% of the 735 CCC companies. Being a CCC member is a quality filter on its own merits. Being in the top 15%, or top 110 of the 735 companies, by Dugan number, meets the cream-of-crop criteria, by my measure.
If you are not familiar with my Dugan Scoring System, please refer to a previous SA article here.
To meet number 2 above, I'll simply use the relative Graham number in CCC. One could also use various p/e, p/b, p/s and other value measure options. We'll eliminate any company which can't beat the average relative Graham score of... Read more