7 Ways to Find Stock Ideas: Improving Your Search Strategy
22.05.12
Crucial to any successful investment process is having a good quot;searchquot; or quot;originationquot; strategy, i.e. ensuring that you are constantly seeing a good quot;funnelquot; of investment targets. Part of that search process is having a well-through through set of investment checklists so that you can quickly filter out the low probability time-wasters. But equally, it's important to think about the top of the funnel - how to find new ideas?
Are you getting enough good investment ideas coming in? Are you losing out because you don't have the right sources? Or are you missing out because you're not paying enough attention?
A famous example of this kind of quot;sin of omissionquot; was given by Warren Buffet who said he committed a major mistake by not buying Wal-Mart at the right time - he suggests that this oversight may have cost his company, Berkshire Hathaway, more than US$8 billion!
Where can I find the good ideas?
That's the million dollar/pound/euro question and unfortunately, there is no one definitive answer. It just requires a lot of hard graft but, as ever, having a systematic approach helps. In no particular order, here are 7 search paths that may be worth building into your process, if you aren't already. Using others? Let us know in the comments below.
Source: Business Insider