Altman Z: Balance Sheet Fortress

Buys companies whose balance sheet can withstand a recession. The Altman Z-Score — a figure that condenses liquidity, profitability, leverage, and revenue efficiency into a single bankruptcy early-warning number — sits in the safe zone of 2.6 or above in every available quarter. Added to that: at least 7 points on the Piotroski score, which sums up financial solidity in points, and interest coverage of at least 10, meaning operating profit covers the interest due at least ten times over. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. New positions are added once a month; a stock is sold as soon as it no longer meets one of these conditions or is no longer rated green.

This portfolio buys shares.