I want to try this idea for stocks I think are solid in the long run. But how do I find out which firms offer a tool that shows stocks hitting their 200-week moving average? Anyone know if there’s a site that tracks this?
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.
Sterling said:
What’s your definition of a high-quality stock? That’s the real trick. This advice just sounds like ‘buy the best companies.’ Well, duh.
Basically, that’s what Munger did his whole life, trying to find those top stocks. He was good at it, but that doesn’t mean we all can pull it off.
@Max
Right. And he had the advantage of having enough money to meet with execs and tour facilities. Plus, a team of analysts digging into data that we don’t always have access to.
Shane said:
@Max
Right. And he had the advantage of having enough money to meet with execs and tour facilities. Plus, a team of analysts digging into data that we don’t always have access to.
True, but anyone can learn fundamental analysis. Most of the key data is public for US companies. There are four big things to look at: income statement, balance sheet, cash flow, and the 10Q/10K reports. Even Berkshire Hathaway only hit it big with about 20% of their picks. You don’t need to be right all the time, just enough.
@River
Pareto principle strikes again.
Shane said:
@Max
Right. And he had the advantage of having enough money to meet with execs and tour facilities. Plus, a team of analysts digging into data that we don’t always have access to.
Buffett has said it’s not all about tours and meetings with management. They can spin you a good story, but you can find out a lot from the numbers available to everyone.
@Bowie
Yeah, I remember hearing that. Probably where I learned they had that kind of access. But a team of analysts would still be more valuable than a tour.
Shane said:
@Bowie
Yeah, I remember hearing that. Probably where I learned they had that kind of access. But a team of analysts would still be more valuable than a tour.
Exactly. A tour might catch obvious lies, but the real insights are in the accounting details.
Shane said:
@Bowie
Yeah, I remember hearing that. Probably where I learned they had that kind of access. But a team of analysts would still be more valuable than a tour.
I don’t think visiting sites would help most investors anyway. It’s more about the data.
@Bowie
Yep, those ‘dog and pony’ shows are useless.
Shane said:
@Max
Right. And he had the advantage of having enough money to meet with execs and tour facilities. Plus, a team of analysts digging into data that we don’t always have access to.
Just buy BRK.B and let Buffett and Munger do the hard work for you.
@Finian
Except, the S&P 500 has outperformed Berkshire recently.
@Finian
Buying Berkshire is still less work than doing all this research on your own.
Shane said:
@Max
Right. And he had the advantage of having enough money to meet with execs and tour facilities. Plus, a team of analysts digging into data that we don’t always have access to.
Berkshire shares are a great option if you’re looking for hands-off investing.
@Max
Have you checked out Poor Charlie’s Almanack?