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r/valueinvestingr/valueinvesting· u/LastMeasurement8· 6d agoDiscussion 0

How do you research companies to find opportunities in a time efficient manner?

Investor summaryNeutral

Author seeks efficient stock research methods, questioning if buying mega-caps like META or GOOGL outperforms researching niche stocks.

Bull points
  • Investing in mega-cap tech stocks like META or GOOGL may outperform researching niche companies.
  • Capturing secular trends like AI can provide significant long-term growth opportunities.
METAGOOGL价值 / 回购
Post body

I want to spend 5 or so hours a week researching stocks to look for opportunities in the market. I only want to do a few buys a year, which means that the times I pull the trigger are when I am VERY confident in my choice. Mostly I'm looking for long term value/growth plays, but I also want to hop on secular trends like the one last year we saw with various AI stocks having huge runs.

IMO the best things to look into about the company, based on advice from Warren Buffet, are:

  1. First: The economics of the business and industry.

\- Are they in position to take advantage of a secular trend and growing industry?

\- Do they do something unique/special? Do they have a strong moat? How much competition do they face?

  1. Second: The management

\- Have the management made good decisions for long term growth? Would Warren Buffet approve of the management?

\- Does the CEO and upper management have solid stake in the shares of the company; meaning that their objectives are aligned with shareholders?

I only want to spend 15-30 mins per company considering I'll have dozens if not hundreds of companies to look into. Currently my research involves asking AI to answer all these questions. I know AI sometimes gets things wrong, but it pulls it's information from sources I would find by myself if I did my own googling anyways, and it is much faster at retrieving the info.

Really what I'm wondering is what the 20% looks like that gives 80% of the result when searching for solid opportunities.

I could also just be overcomplicating things; from spending all this time on researching niche companies when just buying META or GOOGLE would outperform all of them anyways.

What do you all think?

What does your research process look like?

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