Stockopedia’s screening system is a powerful tool for finding stocks that fit certain profiles. I use it extensively. For example, I have run the Stock in Focus (SIF) model portfolio for the last eight years using one of my own screens.
We don’t have to build our own screens to use this system though. The Guru Screens available to Stockopedia subscribers contain a wide range of interesting approaches based on the methods of noted investors.
Some of the most popular and successful screens sit in the growth investing category.
By far the best-performing screen since Stocko’s launch is the Jim Slater ZULU Principle screen. This is a growth plus value approach named after the excellent book by noted growth investor Jim Slater. I would recommend The Zulu Principle to any investor, regardless of one’s preferred style.
At the time of writing, the ZULU screen has delivered an impressive 1,254% return since its inception in 2012. That’s equivalent to 23% annualised over 12 years.
It’s a strong result, but one problem with this screen is that quite often it only provides a small number of stocks – just three at the time of writing, for example:
I think it could take quite a while to build a reasonably diversified portfolio using only the ZULU screen, so I’m also going to take a look at some of the stocks featured in the Growth at a Reasonable Price screen.
The GARP screen is based on the approach made popular by well-known UK investor and journalist David Stevenson. It has returned 307% since inception in 2012, equivalent to a market-beating annualised return of 12%.
In my view, the GARP screen has some overlap with the ZULU approach, and could be a useful source of additional ideas.
Screen: Jim Slater ZULU Principle Screen
Jim Slater says he titled his book The Zulu Principle to reflect the benefits of becoming an expert in a relatively narrow area. With a manageable amount of effort, he realised one could become more expert than most people on the culture of the Zulus of South Africa.
One of…
