Читать книгу The Little Book of Investing Like the Pros - Joshua Rosenbaum - Страница 19

The initial idea search often yields dozens of potential investment opportunities. Step II explains how to parse through a broad list to identify the best ones. This involves a deeper examination of each stock in order to focus your attention on ideas that can become “core” positions. All you need are a few high-quality stocks to kick-start a strong portfolio.

This thinning of the herd relies upon performing high level research on each potential idea in a quick and systematic manner. Towards that end, we provide you with a framework that helps you do just that. It centers on investment thesis, business model, management team, risks & considerations, and financials & valuation. This preliminary analysis is necessary to separate fool's gold from the “real McCoy.”

We also provide a corresponding investment write-up template to help you track and organize your research on each stock idea. This template maps to our Step II framework and allows for easy comparison across multiple companies.

The longer the list of potential ideas generated from Step I, the more difficult the task of refining. Sometimes, an idea may jump off the page as a game-changer for your portfolio. In most cases, however, the ideas with the highest upside opportunity are not so black and white. Once the obvious outliers are eliminated, in-depth analysis on the remaining stocks can begin.