How Geoff Researches Stocks – A Summary

He doesn’t know it, but this fellow is doing process driven trading, and I thought I should try to filter through the words to identify his process:

  • Stage 1 – Search Sources
    • Use Screens
    • Read Blogs
    • Company Competitors
    • A to Z by country or by industry
  • Once a company is selected, look at:
  • Stage 2 – First Filter – Valuation Ratios (30 seconds)
    • EV/EBIT
    • P/Tangible Assets
    • P/Sales
    • P/Book
    • FCF
  • Stage 3 – Second Filter – Industry (30 seconds)
    • Avoid Real Estate
    • Avoid Metals Miners
    • Avoid Financials
    • Avoid Capital Goods Makers
  • Stage 4 – Third Filter – Self-Description (2 minutes)
    • Look for words like  ”niche”, “specialized”
    • Look for non-capital intensive
    • Look for one of a kind
    • Look for makers of cheap and repeat purchased things
    • Look for distributors
    • Look for stable revenues
    • Look for businesses you understand
  • Stage 5 – More Data (2 minutes)
Read the full article →

Leave a Reply

Your email address will not be published. Required fields are marked *