For long-term accumulators, lower prices can be favourable when the business holds up because each new dollar buys more earnings and cash flow.
Framing from Warren Buffett's discussion of repurchases and long-term owners in the Berkshire Hathaway shareholder letters.
The table compares today's trailing earnings and FCF yields with the trailing yields available around 24 July 2025 (1 year ago). The useful cohort is companies where yields improved meaningfully while fundamentals held or improved.
Rankings as of 24-07-2026 4:22am NZT, based on Annolyse's coverage of 100 NZX companies over the 1 year window. 31 are net-buyer favourable.
31
Net-buyer favourable
3
Net-buyer caution
8
Yield stable
9
Net-buyer unfavourable
38
Insufficient data
Extreme yields above 30% are shown as calculated. They can indicate distressed pricing, very low market value, or one-off earnings rather than a calculation error. Current extreme-yield rows: PHL, KMD, MHJ, WHS and 2 more.
Earnings yield is trailing twelve-month NPAT divided by market capitalisation. FCF yield is trailing twelve-month pre-lease free cash flow divided by market capitalisation and is suppressed when FCF is negative or unavailable.
The 1 year comparison uses the latest Annolyse trailing fundamentals available at or before the lookback anchor date (24 July 2025), and a price observation drawn from the historical price store for that window.
Yield changes inside +/-50bps are stable. Yield improvement with stable or improving fundamentals is favourable; yield improvement with deteriorating fundamentals is a caution case.
Extreme yields above 30% remain visible rather than capped because they can be genuine distressed-pricing signals. Treat them as prompts to inspect the company's recent trajectory, not as automatic opportunity signals.
This table shows yield improvement for potential accumulators, not a recommendation. See the full principles methodology for the historical valuation basis and category thresholds.
Listed investment vehicles are excluded from these principle rankings because operating cash flow and earnings-yield metrics work differently for these structures: AFI, BAI, BRM, HFL, KFL, MLN, TEM.