I just read what Spekulatius posts and then buy it. :))))))))
Seriously though, it depends on your investment style, available cash, etc.
Most of my ideas come from SI. Barron's might be good source for ideas when stocks are cheap, but not right now: they are fishing in the same pond, so their picks are mostly "it was much cheaper 4 months ago, we'll still call it cheap, since others are even more expensive and we need to publish the paper". You might find one or two decent ideas through couple of issues.
I don't use screens. If I used one, I'd use FT's global screener and would look at Magic Formula list.
International looks better than US right now in terms of available values. US is mostly fairly valued to overvalued.
Regarding values in US, you can still find some, but mostly they will be controversial, i.e. there will be both bull cases and bear cases. Magic Formula stocks are mostly controversial, since the formula tries to select businesses that have great income, but low prices. Most of the time such combination means controversy.
Some people think that in-depth dd helps to decide whether to go for bull case or not. IMHO, this depends on investor. A lot of time we simply don't know and the choice is crapshoot.
Alternatively, buy great businesses at somewhat-expensive prices and hope that the greatness of the business will compound results well enough to overcome rather expensive price.
I can't advise on Graham'y net-net / cigar butt values. I was never successful in buying these and I don't know how to find good ones in that area.
I'll agree with Buffett/Munger though: read everything. :) Although there should be some method to the madness of reading everything... but you might have to discover it yourself. Some things that I read make sense to me, but not to others and vice versa. ;) |
