Saturday, 22 December 2007

Process of Analysis

As a reminder to myself as much as anything, I'd like to take a little time to record the process I go through as I seek for interesting stocks, and then analyze them.

Finding Stocks
There are obviously any number of ways to come across interesting looking stocks - but given that I'm focused on companies with cheap fundamentals, my main method is to use a Stock Screener (a tool which allows me to filter a list of all stocks based on criteria I specify).

I've just found a very detailed, free screening tool from Zacks Investment Research, which looks really good. In particular I like that it tells you the number of matching companies as you add each new criterium.

And finally, a brief shout out to a new site I just created, that talks about the Lean Manufacturing concept of standard work. It may not be a bad idea to try to find companies to invest in that follow Lean principles, as they should definitely have the edge over others.