I was on Fox Business this afternoon discussing portfolio holdings and the general market. Most importantly, I was suggesting to stop watching the Fed and instead focus on identifying great companies. We use my Magnet model.
The Magnet® Stock Selection Process is a unique and proprietary process to achieve superior long-term risk-adjusted returns. When I first introduced The MAGNET Stock Selection Process several years ago, I suggested that the approach of screening for stocks would rise in popularity. Now most stock market software packages include a screening feature. By utilizing a screening process, the universe of companies can be quickly brought down to a manageable list to further investigate. This list is then taken through a deeper dive before companies are brought into my portfolios. I believe that excess market returns can be achieved through the construction and management of a fundamentally sound portfolio of companies whose revenue growth and profit margins are accelerating above market expectations. I construct some proprietary measures for company fundamentals, some of which are proxies for what would be earnings performance from corporate financial data. As a result, the MAGNET analysis is not misled by reported earnings and responds much more directly to strong sales, low price-to-sales ratios, and other value measures taken from corporate balance sheets.
Individual investors now have a significant advantage over the big institutions. Individuals can identify companies with strong fundamentals that are still too small to be picked up by the bigger institutional funds. Once the institutions find them and drive them higher, the real profits materialize. By just placing a few of these companies in a portfolio and then being patient, individual investors can achieve outstanding results.
Here is a link to the TV segment from today …
https://www.foxbusiness.com/video/6352976620112
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