FNF Investment Guidelines use to select stocks:

SALES/EARNINGS/NET PROFIT increased continuously for 5 yrs? 

SALES/EARNINGS doubled in 5 to 7 years? 

Does the company paid out DIVIDENDS? 

If so, have they increased continuously for 5 yrs? 

Does the company have a stable OPERATING MARGIN (OM)?
(Operating Margin measures Management’s ability to extract profits from the sales of company’s products)

Is current LONG TERM DEBT less than 1/3 of Total Current Assets?

Are CURRENT ASSETS twice CURRENT LIABILITIES?

Is the company’s “Value Lines” - TIMELINESS ranking between 1 and 3?
(Value Line ranks stocks between 1 and 5 for “timeliness”, a prediction of “relative price performance for the next 12 months” – in other words, how fast its price will grow relative to other stocks.)

Is the company’s “Value Lines” - SAFETY ranking between 1 and 3?
(Value Line measured the volatility of a stock’s price around its own long-term trend.  The narrow the band of fluctuation, the lower the rating and the safer the stock.)

Is the company’s - BETA ranking between 0.80 and 1.20?
(Beta is a number that compares the volatility (movement) of a stock’s price relative to that of the total market.  A beta of 1 means that a stock price moves up and down at the same rate as the market as a whole.)

Is the company’s P/E (Stock Price (divided by) Earnings) no greater than 35?
(P/E means Stock Price divided by Earnings.  Example:  If a company’s P/E is 33, that means it’s stock price is 33 times its earnings. So if it’s earning were $1.50, the stock price would be $49.50:  $1.50 X 33 = $49.50.  The P/E will change as the price changes.  If the stock losses $9.50 in one day, the P/E for the next day will be 26.6: $49.50 - $9.50 = $40.00 divided to $1.50 = 26.6.  That is way P/E is sometimes referred to as multiple.)

Is the company’s Standard & Poors Five Star Rating System at or above 3 stars?