How to Quickly Find Stocks to Invest In (10 Questions!) - My Snap Judgment Investment Framework

How to Quickly Find Stocks to Invest In (10 Questions) - My Snap-Judgment Investment Framework

In this video, I will outline how you can very quickly - within 5 to 10 minutes - determine whether a stock is worth your time and digging into further or whether you will be better off by getting rid of the idea immediately.

I’m a big fan of Peter Lynch and one of my most favorite quotes from him is the following: "The person that turns over the most rocks wins the game." And he's right! Investing requires a certain amount of dedication in order to achieve good results. Those turning over the most rocks, those reading the most 10-Ks and the most shareholder letters will learn the most, they will analyze the most stocks, and will generally do the best when it comes to investment returns.

Another powerful quote that I reference in the video is by Charlie Munger. He said “The big money is not in the buying and selling, but in the waiting. [...] The wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don't. It's just that simple.” Your biggest edge as an investor is probably to do nothing for a long period of time and be patient. If you are already investing, you will probably know how hard it is to sit still.

The point I make in the video is that in order to do very little, to make 1-3 investments a year, you need to be incredibly selective because most investment ideas will a) not pass your business quality threshold or b) your stick ideas are simply not available at an attractive price that would allow you to generate alpha / to beat the market. If you look at 100 companies, you might find one stock that's worth investing in.

This inspired me to come up with a framework that allows me to quickly screen for high-quality companies, that allows me to filter the ideas that I come across. A great influence in developing this framework were the guys from focused compounding. In 2019 they released a podcast episode titled “The Secret to Snap Judgments: Why 95% of Stocks Aren't Worth Your Time.”

How to research stocks / how to pick stocks to invest in / how to analyze stocks for long-term investment / How to find investment opportunities
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YOU CAN ALSO FIND ME HERE:
○ Twitter: https://twitter.com/renesellmann
○ Instagram: https://www.instagram.com/rene_sellmann
○ Facebook group: https://www.facebook.com/groups/454691045336200

OTHER LINKS:
○ Inflation Risk video: https://youtu.be/20yxcdmGD2s
○ Focused compounding snap judgment episode: https://www.youtube.com/watch?v=VAsD6tsV7iQ

MUSIC:
○ Music: PPB: High [NCS Music Without Limitations] https://www.youtube.com/watch?v=Tv6WImqSuxA
○ Music: Not For Nothing - Otis McDonald https://youtu.be/Uy5ODz63TbM

Chapters:
0:00 Intro
0:56 Learning from Lynch and Munger
2:32 Being selective
3:47 Focused Compounding & snap judgments
5:57 Focus on no-brainers & 80/20 rule
7:15 Qualitative criteria
11:03 Quantitative criteria
19:29 Bottom line

DISCLAIMER:
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.

Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.

I hope you enjoyed the content!

Видео How to Quickly Find Stocks to Invest In (10 Questions!) - My Snap Judgment Investment Framework канала René Sellmann