Thread by @BrianFeroldi

1/ How I prioritize my stock research list (thread)

I'm lucky

I get asked about tons of stocks that I don't know all the time

Here are the shortcuts that I use to prioritize my research

⬇️⬇️⬇️⬇️⬇️

2/ First, create a big list of tickers

TONS of places to find them

✅ Motley Fool
✅ Twitter
✅ ETFs
✅ SEC filings
etc....

This recent thread is a good place to start

https://twitter.com/BrianFeroldi/status/1334977528986034183?s=20

3/ Put each ticker into @ycharts

Has it:

1⃣Beaten the S&P 500 since IPO?
2⃣Beaten the S&P 500 in last 5 years?

Winners keep on winning
Losers keep on losing

Yes = prioritize
No = de-prioritize

3A/ Long-term data doesn't exist for SPACs / IPOs, so this is FAR from perfect

Also, hard to judge yes/no if a company has only been public for a few months

If good data doesn't exist, I look to see if other investors that I respect like/own it

3B/Here are a few popular stocks from the list

5-year vs. $SPY:

$NNDM - big loser
$USAT - big winner
$CLPT - big loser

3C/ $USAT since IPO doesn't look good.....

3D/ None are disqualified

And I've gotten lots of requests to cover them, so I will

Still, would have much more interest in covering them if they outperformed on both time frames

4/ Check revenue

Ideal: Consistently up and to the right

Bad: Volatile

Terrible: No revenue

Looking better for all 3

5/ FinTwit

If people I respect on #FinTwit own/like it, I bump it up

$NNDM seems to get a ton of love and has been pitched to me A LOT

$OZON seems to get a lot of recent love, hence why its top of list

$QS is newly public and has @jbstraubel on Board - a good start!

6/ Repeat

Consistently refine list

Take top ideas and run them through my checklist in detail

https://twitter.com/BrianFeroldi/status/1324324314053791744?s=20

7/ If the company is awesome,

or has the potential to become awesome,

add it to my watchlist, and maybe buy it.

If I don't think its awesome,

or its way too risky for my taste,

or I don't like the industry/business model,

I ignore it and move on

8/ Other shorthand tests that you can just to quickly judge if a company is worth your time:

https://twitter.com/BrianFeroldi/status/1309468717336719360?s=20

9/ Obviously, this system isn't perfect

Companies change over time, and this punishes long-term underperformers, which may be great buys

Every system has flaws, but, more often than not, I think this system produces a high-quality research list with minimal effort

What short-cuts do you use?

How can my system get better?

I'm always open to hearing ideas!