About Below The Line
The Idea
There’s a quote often attributed to Charlie Munger:
“If all you ever did was buy high-quality stocks on the 200-week moving average, you would beat the S&P 500 by a large margin over time. The problem is, few human beings have that kind of discipline.”
Whether or not Munger actually said this, the concept is sound: the 200-week moving average represents roughly 4 years of price history. When a quality company’s stock drops to this level, it’s often a rare event—the kind of opportunity that might come along only a handful of times per decade for any given stock.
What This Tool Does
Below The Line answers one simple question for each stock:
Is it below its 200-week moving average? Yes or no.
We also show:
- Direction: Is it approaching the line or moving away?
- 14-Week RSI: A short-term indicator of oversold conditions
- Historical Touches: Every time this stock has touched the 200-week line, and what happened afterward
What This Tool Doesn’t Do
- We don’t tell you what to buy
- We don’t determine if a stock is “quality” or not
- We don’t predict future performance
- We don’t provide real-time data (updated weekly on Saturdays)
A stock being below its 200-week average could mean opportunity—or it could mean the business is deteriorating. Always do your own research.
The Signals
Distance from 200WMA
| Zone | Description |
|---|---|
| 15%+ above | Far from the line |
| 10-15% above | Approaching range |
| 5-10% above | Getting close |
| 0-5% above | At the doorstep |
| 0-5% below | Below the line |
| 5-10% below | Deep value territory |
| 10%+ below | Extreme value territory |
14-Week RSI
The Relative Strength Index on weekly data:
- Below 30: Oversold (short-term selling may be exhausted)
- Below 20: Extremely oversold (rare)
- Above 70: Overbought
Direction Indicator
Shows week-over-week change in distance from the 200WMA:
- ↓ Approaching: Moving closer to the line
- ↑ Moving away: Moving further from the line
Data Sources
- Stock prices: Alpha Vantage (weekly adjusted close)
- Data updated: Every Saturday (Friday close data)
- Stocks tracked: Berkshire Hathaway holdings + major S&P 500 names
Open Source
This project is built with Hugo and deployed as a static site. The code is available on GitHub.
This is an educational tool, not investment advice. See our Disclaimer for full details.