Great Stocks

[gfp927z]

Derf, >> criteria <<

The initial screening criteria is the trajectory and steadiness of the longer term chart (going back to 2010). This eliminates most cyclicals, and favors steady type growth stocks. I figure the long term chart provides the best quick summary of not only the steadiness of the business, but the overall quality of management, profitability, persistence of earnings, etc.

Next I scan through the company's basic financial stats from Yahoo Finance. --- PE, PEG, ROE, ROA, operating and profit margins, revenue, rev growth, earnings, earnings growth, net income, cash, debt, cash flow, shorts, shares outstanding, dividend, and div payout ratio. That only takes a few minutes, and the company especially needs to show positive net income, not too much debt, good cash flow, dividend payout % not too high, not too many shorts, etc.

A lot of these stocks have been on my lists for a long time. None of us have Buffett's stock picking ability, so I put most of the stock allocation in the S+P 500. These individual stocks are small positions, and enough of them so that a mega blowup of a few doesn't mean disaster. Also, I figure having a group of individual stock positions (118 so far) will make it hard to bail, so these are meant to be long term buy / hold. If the time comes to lower the stock allocation (currently at 25%), portions of the S+P 500 component can be jettisoned quickly, while the individual stocks remain as permanent longs.

Anyway, that's the basic strategy. I remember Peter Lynch saying that some of his best investments were in relatively dull / boring (but profitable) sectors. He said one of his best long term investments was a company that owned a rock quarry, so the duller the better, as long as the profitability and steadiness is there.

I also have some contrarian value / turnaround stock ideas (link below), but don't usually own many of these. When asked about turnarounds, Buffett said the problem with turnarounds is that they rarely turn around. There are some other boards for higher risk sectors like cybersecurity, cloud computing, biotech, alternate energy, etc, but these are mostly for general interest, though I do have several semiconductor related stocks (AVGO, KLAC, MPWR). Also boards for bonds / fixed income, and asset allocation -


https://investorshub.advfn.com/Contrarian-Value-Ideas-30183

https://investorshub.advfn.com/Bonds-and-Fixed-Income-31578

https://investorshub.advfn.com/Asset-Allocation-Strategies-36260




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