How I Find My Stocks: Step-By-Step Method

This is the first sponsor of the channel. I’ve finally found a product that I can truly stand behind. TIKR is an excellent tool for the intelligent investor to discover new investing opportunities. Personally, I’ve used TIKR since early 2021.

Maybe you are asking yourself: Is $15 per month ($30 with PRO) worth it? If you do, that's a good thing, a great investor should always ask if outlays of cash today will yield returns for the future. Consider this. If using TIKR and doing real fundamental analysis on the companies that you invest in can help you improve your yearly returns by even just 1%, then you need a minimum of $18k in your portfolio to justify a yearly PLUS subscription ($15 * 12 / 1%). Anything beyond a 1% improvement in returns would be profit.

DISCLAIMER: The content on The Swedish Investor is for informational and educational purposes only and should not be construed as professional financial advice. All investment strategies and investments involve risk of loss. Never invest money that you can't afford to lose. Any reference to an investment strategy’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

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As a stock market investor, there's no way that you can look at and evaluate all the tens of thousands of publicly listed companies individually. However, you can narrow this massive number down into a short-list of better than average opportunities by looking at specific key ratios. Much like an expert chess player, the intelligent investor wants to filter out the mediocre or even stupid moves right from the get-go. Let me show you a strategy that has been very profitable for me since I started investing in 2013.

How do you find great investment opportunities? Do you ask around among friends and family? Or maybe you should copy the investments of some YouTuber or Twitterer with lots of followers? I disagree with both approaches. Warren Buffett: "You can't buy what is popular and do well." I'll soon show you a third option.

When investing in a stock market company, there are many things that you want to see. Preferably, the company should be cheap, it should be able to pay out lots of money to you as a shareholder, it should be financially stable, it should be growing, it should have experienced and dedicated management, it should have a so-called moat, which keeps competing businesses at bay, it should be in a favorable political situation, etc. Now, some of these things, you can check in just a few seconds, while others may take days or even weeks to understand, depending on your level of ambition.

When I'm investing in the stock market, I look at the fast-to-check variables first and exclude companies that do not fulfill them. If you do the same, you'll save a lot of time, and you can focus your efforts on better-than-average opportunities. After all, I think that most of us want our "hourly wage" to be as high as possible.

Back in the 1950s, when Warren Buffett started out on his investing journey, he plowed through elephant books such as the Moody's Manuals to find investment ideas. These books had many thousands of pages. Luckily, you and I do not have to do that anymore because we live in the digital age. Today, many investment research platforms can help in your hunt for overperformance, and the best one that I've used in recent years is one called TIKR.

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Timestamps for investing in public businesses (picking stocks):
00:00 Intro
02:41 Step 1: Valuation
06:07 Step 2: Profitability
08:03 Step 3: Growth
09:21 Step 4: Reliability
11:00 Step 5: Deep Dive

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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

[TheSwedishInvestor]

Support your future self (and this channel) by signing up for an account with tikr.com/tsi

This is the first sponsor of the channel. I’ve finally found a product that I can truly stand behind. TIKR is an excellent tool for the intelligent investor to discover new investing opportunities. Personally, I’ve used TIKR since early 2021.

Maybe you are asking yourself: Is $15 per month ($30 with PRO) worth it? If you do, that's a good thing, a great investor should always ask if outlays of cash today will yield returns for the future. Consider this. If using TIKR and doing real fundamental analysis on the companies that you invest in can help you improve your yearly returns by even just 1%, then you need a minimum of $18k in your portfolio to justify a yearly PLUS subscription ($15 * 12 / 1%). Anything beyond a 1% improvement in returns would be profit.

DISCLAIMER: The content on The Swedish Investor is for informational and educational purposes only and should not be construed as professional financial advice. All investment strategies and investments involve risk of loss. Never invest money that you can't afford to lose. Any reference to an investment strategy’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. TSI Productions AB and associated parties expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed on this channel.

[brucelocker]

Great job Swedish Investor…..having just finished watching ALL your videos (took a couple of months to complete) I can say I have greatly increased my knowledge of investing! Keep the great content coming. “Come for the entertainment stay for the invaluable education”

[dresden]

Honestly one of the best videos I’ve watched in my entire 3 years of investing and learning. And as a junior in finance this is amazing application of financial principles to find good investments. This is an amazing video.

[lalasih]

A very straightforward approach...helps me a lot as a newbie investor..And you even provide the segmen, with a timeline and relevant photo as indicator. Thank you

[gregorm.]

Thank you so much for the video!

What would you suggest as a starting point for valuation if one would like to use P/E ratio?

[jesusarroyo]

One of the best video I have seen to start investing

[leoasztalos]

Hi Erik!
Thanks for the video and sharing your approach with your followers. You are really helping people to gain a lots of financial intelligence!
Keep up with the good work!

[miich]

Thank you for this! I just started learning abt investing and this was very helpful.

[daitana.]

Its always good to learn new ways of finding out the companies.

[AliEbrahimian]

Hi, Thanks for all the information you are sharing with us.
I have a question, though not directly related to this topic.
How do you chose your broker?
There are a lot of options, but there are also a lot of negative reviews.

[tudorgheorghe]

This Tikr tool is pretty amazing, thanks for the suggestion. Good, educational content!

[freigeist]

Thanks a lot for that. If you want to find overvalued stocks, do you just switch the algebraic signs?

[wei]

Love your videos and how you select your sponsor. Keep up the great work 🙂

[plamoverse]

Hi there. I love how you explain every detail about stocks and investing. I want to start investing and I wanted to know what stock broker you are using to buy stocks. What broker do you recommend for beginners like me.

[ghristijan]

Could you go more in depth about current ratio and debt ratio? How to use and what are good perimeters to set up? Thank you.

[francoischampagne]

Hi. Great video. What is your overall ratio of Individual Stocks versus ETFs ?

[BJJared]

What software do you use for these videos? I love it!

[webentwicklungmitrobinspan]

i happend to backtest the same set of filters you use (since i discovered alpha in these filters) and i can add that you can expect a 3pc to 5pc alpha for a yearly rotating bucket of the best 50 out of 2k us stocks. (highest rated by regression which simply discoverrd that a highet fcfy is better for example)

to be precise i used fcfy, rule of 40, debtratio and exluced financials

high dividend yielding companys showed underperformance btw
so yeah .. nice filter

[lukashuss]

Hey, first of all thanks for your nice work. Your Videos are not only straight forward and compact, they are also entertaining! I have one question: isn't the RoA a number that is specific to a sector? Software companies for example have on average a higher RoA than companies in the steel industrie. So, shouldnt the RoA rather be a measure to compare companies in the same sector than a measure to generally filter stocks beforehand? I would be super happy if you could give me your opinion on that! :) Keep up the great work! Cheers!

[BritishwarrenBuffett]

Great video!! massive fan of yours!! Keep up the hard work!! It’s greatly appreciated!!