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.
FAST Graphs Analyze Out Loud Video:
Disclosure: Long ABBV at the time of writing.
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