Friday 12 April 2013

How I Screen for Stocks

As mentioned under the Investment Philosphy post I tend to look for companies where I understand their products or services. This has generally led to the industrial sector where I can use my business and engineering background to assess the investment. I do not really have a specific methodolgy but I do use most of the major financial services (web-sites) available.

There are many financial informational services available (some free and some are subscription based) where stock screening can be done. In fact if you have an account at a major financial institute there is good chance that the firm provides (free of charge) some stock evaluation service. Some of the services (web-sites) that I use are Bloomberg, Valueline, Standard and Poors, Globe Investor Gold (real time quotes), Morningstar, Google Finance, Marketwatch, Wall Street Journal, Barrons, Investors Business Daily, Federal Reserve (economic research), Wells Fargo, Seeking Alpha and many other names.

I have on-line subscriptions to many of the above web-sites (services).  Others are provided mainly free of charge.

Using the above services I am constantly on the lookout for an investment opportunity. Generally speaking if I am able to find 1 or 2 companies per year I would consider that a good result.

For those folks that like a summation:

1) Look for companies that offer a product or service that I understand.
2) The company should offer decent return on equity (capital).
3) The company should have a strong a sustainable competitive position.
4) Capable management.

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