I look at new industries with the potential for disruption first. There are usually three top companies vying for dominance. Then it comes down to analyzing them and trying to figure out which will be the big winner a few years later. The good news is you need very few stocks to make money. I've never understood investors who invest in 10+ stocks (I never do more than 6). Although I admit it's subjective. If they have time to keep an eye on every company in their portfolios, they could do well too.
Thanks for this post. And I see you're a Stock Rover fan. Any thoughts on that service vs Stockopedia? And does Stock Rover do Europe? I gave the site a quick glance and didn't see anything beyond north america. Thanks, Joel
Hello Joel, I haven't used Stockopedia. I took a look and it looks like a great software. Stock Rover does not do Europe. They only cover US and Canada. Either way, they both have 14 day trials so maybe give them a go and see which one fits you better?
Love seeing these Graham and Buffett-inspired screeners for small caps - reminds me of my own emphasis on technical indicators when analyzing QQQ components. The margin of safety criteria + strict financial ratios make perfect sense in today's market, though I'd add RSI and TEMA/DEMA crossovers to catch optimal entry points. Keep sharing these analytical tools!
I look at new industries with the potential for disruption first. There are usually three top companies vying for dominance. Then it comes down to analyzing them and trying to figure out which will be the big winner a few years later. The good news is you need very few stocks to make money. I've never understood investors who invest in 10+ stocks (I never do more than 6). Although I admit it's subjective. If they have time to keep an eye on every company in their portfolios, they could do well too.
That is harder to do but the payoff can be enormous if you find the next Facebook.
Thanks for this post. And I see you're a Stock Rover fan. Any thoughts on that service vs Stockopedia? And does Stock Rover do Europe? I gave the site a quick glance and didn't see anything beyond north america. Thanks, Joel
Hello Joel, I haven't used Stockopedia. I took a look and it looks like a great software. Stock Rover does not do Europe. They only cover US and Canada. Either way, they both have 14 day trials so maybe give them a go and see which one fits you better?
Love seeing these Graham and Buffett-inspired screeners for small caps - reminds me of my own emphasis on technical indicators when analyzing QQQ components. The margin of safety criteria + strict financial ratios make perfect sense in today's market, though I'd add RSI and TEMA/DEMA crossovers to catch optimal entry points. Keep sharing these analytical tools!
Thanks Rick! I am intrigued by the momentum indicators for entry.