Where to Find Stock Ideas


Here is Where to Find Stock Ideas

Where to Find Stock Ideas

Where to Find Stock Ideas

Good ideas are hard to come by. There are dry spells as well as an occasional monsoon of ideas. But how does one maintain a steady influx of ideas and knowledge?

Screens

The most popular would be a stock screener. There are many free ones but here is a list that I refer to:

Although screens are an easy method of finding companies, I rarely use them.

Blogs and Sites

Another form of idea generation is obviously visiting other blogs and sites. Everyone has a different type and size circle of competence, so gathering a good range of sites that are not identical to your views and processes will keep you on your toes and will definitely help you expand your own circle of competence and see things from different angles.

For example, I’m a value investor but I still look into dividend, growth and even occasionally technical investing. The purpose isn’t to apply it, but to know whether it can benefit my strategy. Plus, it’s always important to know why something won’t work.

You can view my list of recommended sites here.

Weekly & Monthly Journals

Reading company related news and short articles will help you get an overview of the company and all the noise that goes with it, but nothing much beyond that.

Reading high quality journals will help you get informed about many different issues beyond stock analysis. In weight lifting, you can’t continue to increase your bench press by just performing chest exercises. You need to have an equally strong back.

Analyzing companies all day won’t increase your ideas or increase your circle of ideas. You’ll just end up looking for and at the same things.

Forbes, Smart Money, Wall Street Journal and even the free Morningstar articles are good places to start.

Books

I’m ashamed to say it, but until last year, I hadn’t read a complete book for over 5 years. Ironically, it’s through books where I get most of my ideas. Now I’ve been able to finish at least 1 book a month.

Good investing books often mention examples which I always jot down to review later and it isn’t these companies that I find interesting, it’s the competitors, suppliers or customers of the company that show up in my radar.

Conference Calls, Transcripts and SEC

This is probably the most time consuming, but what better way to learn about a company than to listen to the conference calls or read the transcripts. Seeking Alpha publishes conference call transcripts for free which EVERYONE should take advantage of. I even have the transcripts set up with my RSS reader so I receive all transcripts. I’ve also come across some ideas this way.

The SEC website is also another vital location. It won’t necessarily give you ideas, but it will definitely plant conviction and understanding into your brain. The SEC site is quite daunting and confusing at first, but just browse through and you’ll get used to it in no time.

Good Ideas Rarely Come From These

To finish off, here are some places where I do NOT get good ideas from.

  • Radio, TV, newspaper news announcements
  • People around the water hole
  • Brokers
  • Financial advisors

That is some points on where to find stock ideas. Do you have anything to add?

[tags]ideas,screens,sec[/tags]

  • what books have you been reading lately? I haven’t read a new book in a while and a recommendation would be appreciated.

  • Derek

    What about Sedar, Edgar and your favourite mutual fund managers holdings (or similar companies that are cheaper, but have too small a market cap for them to buy?)

    DH

  • @AlexG
    You may have read it already but I’m thoroughly enjoying “One Up On Wall Street” by Peter Lynch.
    Next on my list is Margin of Safety.

    @Derek
    Good suggestions. A lot of people follow their favorite Guru portfolios, but I for some reason don’t do this. Not even for Buffett. I like looking for small caps which many managers can’t get into.

  • exactly, Buffett probably wouldn’t even be buying mega-caps if he were starting out or managing a smaller portfolio.

    I’ve tried about every free screener and the best one I know of is Zacks.com custom stock screener. probably all the variables you need!

    http://www.zacks.com/screening/custom/index.php

    or go to and click custom on the left.
    http://www.zacks.com/research/screening/index.php

  • I think for a pay screener aaii.com’s is good. I’ve heard good things about that one.

    My ultimate best ideas only come a few times a year or less and are all contrarian. I just about always know the company and their industry well enough to see it working out after a sell-off. Kmart years back, Bausch and Lomb a few back, Finish Line etc.etc

  • Mark

    Wow. Zacks screener is awesome. Thanks, it will probably come in handy soon and your ideas are always very contrarian and interesting.

  • anytime. thanks

Ready to try Old School Value?

TEST DRIVE THE DEMO TODAY
[checklist-collection]
[checklist-collection]