These are great tips for identifying good companies! Any advice on spotting ones that are both high-quality and undervalued? That’s where I struggle the most :)
Thanks, Moat! There is no straightforward way to do this. What I typically do is just read/analyze the companies I am interested in the company then perform a quick & straightforward reverse DCF & Earnings growth rate valuation numbers ( I wrote a post on valuation explaining these methods) and compare it to the current valuation level.
If I see there is a misprice I research more and buy it. If not I track the company and wait for the market to misprice it.
In my "top 5 picks" post I shared the undervalued companies. Due to some recent negative news, the stocks fell by a lot but the business fundamentals did not change. I use that as an opportunity to buy.
These are great tips for identifying good companies! Any advice on spotting ones that are both high-quality and undervalued? That’s where I struggle the most :)
Thanks, Moat! There is no straightforward way to do this. What I typically do is just read/analyze the companies I am interested in the company then perform a quick & straightforward reverse DCF & Earnings growth rate valuation numbers ( I wrote a post on valuation explaining these methods) and compare it to the current valuation level.
If I see there is a misprice I research more and buy it. If not I track the company and wait for the market to misprice it.
In my "top 5 picks" post I shared the undervalued companies. Due to some recent negative news, the stocks fell by a lot but the business fundamentals did not change. I use that as an opportunity to buy.
Good points, if you find a more automated way to find undervalued companies, don’t be shy and share with us 😎