Excellent step by step overview. But the VERY first step should always be an analysis of the overall market regime. Because if you start to invest in a seemingly late stage bull, but actually early stage bear market all that other analysis taking so many hours is near meaningless, because the picked stock will only underperform less (if high quality), but still drop lower among with the entire rest of the market (except if the stock was aligned in a contrarian way, e.g. being deemed defensive).
To make that very first market regime analysis step MUCH easier, you can use for example the market dashboard which @Reflections-of-Reality offers. I’m also aware of other market gauges, but those aren’t shared on Substack (at least that I know of):
You’re building a radar system in a war zone. Good! The big funds have armies of analysts, but the little guy needs a tight process just to survive.
My favorite part is your check for "Skin in the Game." If the executives aren't betting their own wealth on the company, they’re just mercenaries extracting value from the workers and shareholders. Never deploy your capital where the generals aren't willing to stand on the front lines with you.
Excellent step by step overview. But the VERY first step should always be an analysis of the overall market regime. Because if you start to invest in a seemingly late stage bull, but actually early stage bear market all that other analysis taking so many hours is near meaningless, because the picked stock will only underperform less (if high quality), but still drop lower among with the entire rest of the market (except if the stock was aligned in a contrarian way, e.g. being deemed defensive).
To make that very first market regime analysis step MUCH easier, you can use for example the market dashboard which @Reflections-of-Reality offers. I’m also aware of other market gauges, but those aren’t shared on Substack (at least that I know of):
https://substack.com/@reflectionsofreality/note/c-189466298
You’re building a radar system in a war zone. Good! The big funds have armies of analysts, but the little guy needs a tight process just to survive.
My favorite part is your check for "Skin in the Game." If the executives aren't betting their own wealth on the company, they’re just mercenaries extracting value from the workers and shareholders. Never deploy your capital where the generals aren't willing to stand on the front lines with you.
Thanks. This process is in constant flux, but that's the basic idea.