Research
In the realm of equity research, it is often easier to recognize a great stock than it is to find one. One can learn to recognize a great stock by studying the books of Peter Lynch and Warren Buffett. In those books you can acquire the criteria which often characterize great stocks. You then take those criteria and start matching them up with the thousands of stocks that are out there. Once you’ve found a perfect match, or close to a perfect match, you will have likely found yourself a winner. Acquiring the criteria is the easy part. Where investors often fail is in not spending enough time searching for the best match. Too often they settle for a stock that Buffett or Lynch would not be interested in. In the end, it is the person who puts in the most time who will find better matches and achieve better returns. Thus, at Linde Equity, we spend the majority of our time researching stocks.
Below are some examples of the research methods we use to find selective stock ideas for our clients:
- Review at least 20 financial websites for investment ideas each morning.
- Read the Globe & Mail ROB, Financial Post, and Wall Street Journal daily.
- Track insider buying by officers and directors each day.
- Monitor the buys and sells of the top fund managers.
- Subscribe to at least 10 leading investment periodicals.
- Run stock screens based on key growth and valuation metrics.
- Pay attention to balance sheets, income and cashflow statements.
- Telephone or meet management of companies whenever possible.
- Maintain high scrutiny when monitoring existing investments.
“The person who turns over the most stones wins!”
- Peter Lynch