Every month I’ll post two portfolio screens. Both will house statically cheap stocks. The idea is to increase the amount of investments you look at each month. Many of the most successful investors look at hundreds, sometimes thousands of stocks each year. The reason they can look at so many is so they can pick the very best investments.
Put it this way, if only 100 companies how do you know you’re being efficient with your capital. Within these hundred stocks there might be only one or two investments you understand, like and is trading at an attractive price. You might end up investing in the best stock which is still within a group of bad investments.
That’s why it’s always a good idea to look at more opportunities and then after a sufficient time, you can make up your mind of which investment stands above the rest.
But if you’re not a fund manager or professional investor buy day, it might not be possible to sit down and scan through hundreds of stocks. Even if you had the time where would you start? There are hundreds of thousands of investment actively trading each day. Should you start with the A’s and work down?
Hopefully these portfolio screens will make it a lot easier for you to look at more investments. Each screen will consist of the top 20 stocks based on a certain criteria (I’ll tell you before hand). That means your eyes will pass over 40 stocks each month and 480 stocks each year. While not all will be worthwhile investments, once in a while, a cheap investment will pop up that might be too good to pass up.