Key insights
- The post reflects a common struggle for new investors: information overload and conflicting investment strategies. The author is overwhelmed by different valuation methods (Magic Formula, Graham's intrinsic value, P/E ratios) and risk management approaches. The key takeaway is the difficulty in applying theoretical frameworks to real-world stock selection, especially when considering qualitative factors alongside quantitative metrics. This uncertainty can lead to hesitancy and a lack of conviction in investment decisions. The post highlights the challenges of finding a consistent and reliable investment process.
Hi everyone,
after reading a few books i understand the whole concept and everything but i struggle on the technical side or even more on the approach.
For example: The magic formula from the little book that beats the market.
Their screener seems to be offline and how else would i get a list of Companies sorted by that formula?
The there is the graham approach for the Intrinsic Value.
Sites like simplywallst and other with analysts
People who only buy low P/E ratios and so on
Some have a margin of safety while others spread the risk over 20-30 stocks which makes sense until another book suggests to only hold 5 stocks and so on😁
What are the key values you look at?
Currently i use simplywallst to create a watchlist, i check the stocks by the graham formula and i still feel like i have no idea what i'm doing😁
For example stocks like Adobe or Citigroup would pass by numbers, but i also know they have internal problems which create a risk that i don't want to have regarding to other books.
The big and stable Companies on the other side aren't cheap and give no margin of safety while i have a feeling that they may rise even more.
How do you guys value a Company? Only by math? Expectations? Analysts or other screening options?
It just feels like for every way i learn in any book, there are others that say it doesn't work that way😁
I'm willing to take a risk but i also don't want to jump in and just buy stocks without knowing what i do or how to justify why i bought that stock.