Share market screening

Discussion in 'Shares & Funds' started by Prop_invest, 18th May, 2020.

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  1. Prop_invest

    Prop_invest Active Member

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    Hi all,

    I am new to share market and trying to learn. Read many posts here and learnt a lot. THANKS.

    Just have a question which still I am not clear on it
    How should I screen the companies and short-list them? How do you guys do it? Do you start with a specific measure? Do you use any website/tools for that?

    Thanks
     
  2. Ross36

    Ross36 Well-Known Member

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    Not advice: but everything I needed to know about screening individual companies, market timing / trend following and factor analysis was covered in these videos by Lars Kroijer.



    His Investing Demystified book is a classic in my mind.
     
  3. geoffw

    geoffw Moderator Staff Member

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    I've tried doing the screening thing. I spent a lot of time with very little to show for it.

    I'd much rather use ETFs now. Far simpler, but with comparable results (or even better results in my case).
     
  4. Prop_invest

    Prop_invest Active Member

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    Thanks guys for your comment

    Would you tell me how you decide on index funds or ETFs?
    I think the main drawback of these approaches is the fees. Right?

    Geoffw: can you explain more on why EFTs worked better?
     
  5. geoffw

    geoffw Moderator Staff Member

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    ETFs have been explained in great length in the forum - but here's a definition
    Exchange-Traded Fund – ETFs (a US definition, but the same principle applies here).

    So an Exchange Traded Fund, let's say VAS, tries to track the ASX 300 index. These are shares which you can buy on the ASX, but you don't try to pick individual companies, you rely on the performance of the market as a whole. You won't get any spectacular wins, but you are also unlikely to get huge losses either - unless the whole market tanks.

    The individual shares I bought mostly had modest gains, except for one company which lost 50% of its value.

    And a view from the world's best investor - a very famous bet.
    Buffett's Bet with the Hedge Funds: And the Winner Is …
     
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  6. Fargo

    Fargo Well-Known Member

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    Read newsletters put out by the top fund managers such as Joe Magyer from Lakehouse Capital who often disclose top weightings and new posistions as well as some commentary. From the highest weighting of posistions in ETF's and managed funds for the desired sector. From interviews in AFR where some of smartest people give a tip. Look on NZX not too many to choose from but great unfollowed innovative companies . One of the best place is from Morning Stars top overvalued companies list, as they value companies using different metrics, than smart investors with deeper understanding than them . Use Matt Joass blog on thought processes to see things differently. Sometimes the same companies come up. I look at revenue growth from company reports should have 20-30% + revenue growth. Look for SaaS companies that produce something once and produce recurring revenue, capital light companies , scalable companies. Founder lead with a lot of skin in it as well as a lot of inside ownership, Tail winds. Large market opportunity.
     
    Last edited: 18th May, 2020
  7. Fargo

    Fargo Well-Known Member

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    Just look at the performance of NDQ the companies in it, and what they do, and how they do it. You have to ask why invest in anything else.
     
  8. mtat

    mtat Well-Known Member

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    Advantages of globally diversified, index ETFs:
    • Simplicity - easy to maintain for you/spouse/kids
    • Very low fees
    • Very tax efficient
    • Low turnover costs
    • No fund manager risk
    • No idiosyncratic risk
    • Requires exponentially less time vs. an active approach
    • ...yet it will outperform most investors

    Watch this whole video:


    Guide on passive/index investing:
    Passive Investing Australia
     
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  9. Prop_invest

    Prop_invest Active Member

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    What is NDQ?
     
  10. geoffw

    geoffw Moderator Staff Member

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