The Zulu Principle is an investment strategy made famous by Jim Slater in the book of the same name. It is a GARP investing style which uses a combination of growth and value, looking for shares where brokers are forecasting high earnings growth, but which are currently valued at a price that is low relative to their forecast earnings. The strategy aims to capture growth companies at a reasonable price by using the PEG Ratio. Slater uses forecast earnings to calculate both PER and the EPS Growth Rate. As Slater puts it: "I have always been attracted to growth shares, particularly those that can be purchased at what I perceive to be a discount to their proper value”. To learn more about this strategy please click here »
UK investment guru who specialises in growth investing. Wrote the 'Zulu Principle'
The Zulu Principle: Making Extraordinary Profits from Ordinary Shares
by Jim Slater
According to Company REFS, Irish stockbrokers Merrion back-tested a Zulu Principle portfolio of stocks and concluded that it would have delivered an almost 10 year CAGR of 24.5% (excl. costs), compared to just 4.4% CAGR for the FTSE All Share.
This screen is based on a UK dataset.
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And limited to the first 200 Results
Jim Slater ZULU Principle Screen Graphical History Returns| Timeframe | Screen Returns | FTSE 100 | Outperformance |
|---|---|---|---|
| 1 week | -0.82% | 1.44% | -2.3% |
| 1 month | 3.79% | 6.08% | -2.3% |
| 3 months | 2.40% | 5.68% | -3.3% |
| 6 months | 18.38% | 19.31% | -0.9% |
| 1 year | 28.80% | 23.73% | 5.1% |
| Since inception | 41.84% | 25.3% | 16.5% |
| Annualised | 27.81% |
Risk| Maximum Drawdown | -13.73% |
| Average No. of Holdings | 18.7 |
| Diversification Level | Good |
Chart based on an equal weighted portfolio of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.
| Ticker | Name | Mkt Cap £m | P/E Rolling 1y | PEG Slater | EPS Gwth % Rolling 1y | ROCE % | RS 1y | Sector | |
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