Best Stock Indicators

Total 8 Posts
These articles are a discussion of the characteristics of a stock that may indicate the stock is a "Best Stock"

Top 5 Holdings - July 2020

By popular demand I am going to start publishing my top 5 holdings at the start of each month. These top 5 make up 54% of my total portfolio and gives you the flavor of stocks I am most committed to.

Which return ratio should you use?

There are a bunch of different ratios used to evaluate the return generated by a business including: Return on Assets (ROA) Return on Equity (ROE) Return on Invested Capital (ROIC) Return on Capital Employed (ROCE) Return on Tangible Capital Employed (ROTCE)

Moat enhancement devices

As we said in "How good is the moat surrounding your castle" a good most is much more than water in a trench. A good moat has many enhancements to stop people who learn to swim - like crocodiles. So lets discuss what some of those "Moat Enhancements" are:

Telltale signs of a "Best Stock"

Fast sustainable growth is rarely priced into the market more than a few years out. So if you can find a fast grower that you are confident can continue growing quickly for the next 10 years - the excess growth from years 3 through 10 comes very cheaply.

How good is the moat surrounding your castle?

A moat is the competitive advantages possessed by a business that protect it from competitors and allows them to earn a high return on equity over a sustained period of time. Like a moat protects a castle, competitive advantages protect successful businesses.

Investing through the rear view mirror

Know what you are looking for in your search for "Best Stocks". These are the characteristics of a great business.

FINANCIAL METRICS IN THE POST-TRUTH AGE

Nice find by Dean Moriarty. He unearthed this great presentation by Jim Chanos from Kynikos & Associates (famed short seller) highlighting items you want to be on the look out for when searching for your "Best Stocks" Found PPT slides by Jim Chanos (@WallStCynic) & Kynikos Associates RE: Sketchy Accounting.
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