The idea that you've read a book critical of current accounting processes, and now suddenly you think you have a new and better way to analyze equities is, sorry to say, indicative of your youth.
You are a young investor trying to figure out how everyone else has got it wrong, and you've got it uniquely right, and therefore you will win in the investing market.
I'd suggest instead you try to figure out how "everyone else" does it today, and then you try to do the same thing BEFORE the others do.
Think about it. Even if you are correct that GAAP accounting is useless, if everyone else uses GAAP, how is your opinion that GAAP is useless going to help you? You buy a stock that according to YOUR investment process is great. No one else ever buys your stock, because their investment process is different than theirs. If others never come to YOUR conclusion, how does your investment's stock price go up?
To be great in investing, you need to buy a stock and after you've bought it, everyone else has to come to the similar opinion that your stock is great, and their buying pushes the price higher.
If you aren't using the same process as lots of other people, how can you be sure that they will ever come around to your view, and buy your stock?
GRVY is a great example of this. I'm POSITIVE it's a great inexpensive stock. I realize others do not and may not ever hold my view. So even though my investing philosophy says GRVY is awesome as a stock, since NOBODY seems to agree (no idea why, but they don't) I cannot expect GRVY to go higher.
Buyers push prices higher. Focus on getting into stocks that others will want to buy IN THE FUTURE. Don't focus on doing something completely different from what others are doing, because they may do something different than you, forever! |
