What is a "Saul" stock?

That is a repeated question here. Is ticker XYZ likely to fit the model here?

There’s a way to quantify all this using rudimentary math. Take all the stocks picked by Saul in the last 2-3 years. Take their EPS (or 1YPEG) and compute the mean and variance. Fit this to a normal distribution. The vast majority of the “mass” of the bell-shaped normal distribution, lies around the average with one standard deviation.

Getting away from the statistical mumbo-jumbo, and using some numbers from the top of my head, let’s say that the average Saul stock has PE of 50 with a standard deviation of 20, then most of the Saul stocks will fall in the range of 30 to 70 PE.

In other words, if you offer this board a stock whose PE is 12%, your chances of fitting the stock into the model are close to none.

You can do the same exercise to 1YPEG. It appears that the average is 0.5 with most of the mass falling in the range of 0.30 to 0.70…

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