How do we find stocks to own?
Obviously, we want to find the few most likely companies to increase in value. It follows that their price will stand the best chance of increasing. What are the characteristics of these companies?
They must balance all; too little capital investment means lost opportunity. Too much means dragging debt cost. We search for that sweet spot that maximizes profit and reduces risk. This means analyzing the universe of U.S. listed stocks using 27 indicators. Although none are found perfect, we choose the best 20 to own to keep our investment in each under 5% of investment funds. If fewer than 20 are found, we keep the balance in cash, gold and silver, or the SPY and QQQ of their prices are increasing.
Our analysis methods are based on Benjamin Graham, modified by Warren Buffett, and described by Robert Hagstrom. Lately, we have added the precepts of Mike Turner, who answers the questions of when to buy and when to sell.
There are additional indicators, such as 30 years of increasing dividends, but we don't want to find we have no prospects! You can add your own, if you wish.
Here are the indicators:
see stocks with all indicators
Here are some additional analyses we don't need to use: