Here Is How I Find Stocks Through Comprehensive Research And Due Diligence | FAST Graphs

Subscriber Francisco Machado offered an excellent suggestion that inspired this video on how I conduct comprehensive research and due diligence on stocks. Here is what he asked me:

“Thank you for the video, Chuck. One idea, if you think it may be helpful, would be to show your in depth (as much as possible) research of one stock to showcase the full potential of Fast Graphs as you yourself use it before investing.

In most videos, because you are trying to give an overview and cover as many stocks as possible, you cannot go that deep and you always warn us that the main graph is just the starting point. Can you share with us your step-by-step process to research a stock in depth. Is there a check list of items to check on fast graphs, before buying? In other words, once you find a potentially good stock, what steps do you follow, and what items do you need to see before investing. Thank you for considering it.”

I felt the suggestion was important because since I am also known as Mr. Valuation, I feel it is important to recognize that I am not only a value investor but a believer in business perspective long-term buy-and-hold investing. In short, I do not buy the stock - I invest in the business. Consequently, it is imperative that I get to know and understand the business as best as humanly possible. Recognizing that there is only so much a layman can truly know about the inner workings of a business, my objective is to get comfortable in believing that I have identified a solid and good business.

With that said, here is how I approach conducting comprehensive research and due diligence on every stock I am considering. With this short video, I will be focusing on the process, because that is all that can be accomplished in a few short minutes. Nevertheless, I hope this will help provide a perspective on not just the importance of research and due diligence, but also on the methodologies that can be utilized.

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#stocks #investing #dividends

[jershir]

Chuck, love the increased frequency of the videos! Always click as soon as I get notified. Happy investing from a fellow Tampanian!

[franciscomachado]

Thank you very much for taking the time to make this video!

[tookalookday]

If there's a better YouTube channel for amateur investors, I don't know what it is. With FAST Graphs I'm able to expand my knowledge quickly and apply that new knowledge with ease. And (the most important thing for me), with Chuck's plain language wisdom I'm able to significantly reduce the potential to make a decision I will regret. Having made far too many of those "decisions" I just want to say Big Thanks, Chuck!

[SergiMedina]

ABBV is an amazing opportunity, because it's an amazing company, juicy dividend and, because of uncertainty with Humira and the debt, it's very undervalued. I've been buying since last year and I keep adding. Also T. Thanks!

[frankszczublewski]

Another FASTgraphs session at Carnevale University. Brilliant!

Francisco, thanks for asking the question that triggered this video.

[ccrider]

These videos are priceless. Literally.

[RedditFam]

Chuck, thank you for all the work that you put into videos. It is really helpful. Best wishes!!

[psuk]

Thank you Chuck. I'm a massive fan of yours. I watch your videos without fail.

[bryant]

Hi Chuck, I think fast graphs and your videos are an amazing resource for the value investing community, leaving a comment to help the channel

[petperthecommenter]

Your videos are invaluable, it has made me a much better investor, much thanks

[gregm]

Excellent insight. I was wondering if you could elaborate a little bit more, how to build portfolio. You mentioned about 15-25 stock maximum. I would like to get your perspective on allocation of sectors/supersectors and maximum allocation of particular stock. Hope you find some time to talk about it. Many thanks again!

[gilfrisbie]

That makes perfect sense and I thoroughly appreciate your response. You're my guiding light. Many thanks!

[tonybrunet]

Chuck thanks for your time in creating another great video and learning experience.

[jepadelmonton]

Great video! Not only is it loaded with good info on your product it also explains well how you proceed to analyze a company for its merits as a potential investment. Thanks

[elisaberthlohmann]

Chuck, thank you very much for this brilliant video.  
I Iearned a lot about research of stocks.

[ejordan]

I think this is the only channel I’m actually excited to get notifications from; I learn something EVERY time!! I’m curious if you’d ever participate in an IPO or jump on a new stock early. If so, how do you approach that?

[valeriebryant]

Hi Chuck,
Thank you so much for taking the time to share so much knowledge with all of us. I would love to hear your thoughts on estimated fair values, particularly when analyst fair values are significantly different from what you would conclude from looking at a FASTGRAPH. For example, BMY. Morningstar and Zacks are currently showing a fair value for BMY of around 65-70 per share. However, FASTGRAPHS would suggest that it is much higher, in fact, double the estimate of the analysts. I understand that analysts are using a discounted cash flow method versus what I think you could call a multiples comparable method on FASTGRAPHS. But, it would make me feel much better, if different methods of valuation at least landed in the same ballpark. My guess is that analysts are factoring in a higher level of risk/uncertainty related to the earnings forecast than FASTGRAPH. Even this is hard to believe, given that the analyst scorecard shows that BMY has missed the 2Y analyst estimates 0% of the time! Please help us understand why analyst estimates of fair value can be so different.
Again, thank you so much for FASTGRAPHS and all the videos, amazing content!

[phvaessen]

I'm long ABBV - my discounted future cash flows intrinsic value were somewhat lower $122 but they are one year old so have to do them again, your video confirms me to hold, and maybe add some more - excellent due diligence - I also look for negative news or analyst opinion to challenge my positive bias.

[nicholasmenon]

Great video, Chuck! I see you've been eyeing some nice-looking shirts on Milamode - I like your style! 😎

[johnrenaud]

Chuck, with a fragile market resembling a crystal goblet walking a tightrope on a windy day, have you ever considered doing a video on exiting stocks. What would you take into consideration, short gain vs long, ex-dividend dates, partial sells, etc. Yes, it would be going against the grain, but just as important. An exit strategy. (For Boomers like me)