/biz/ - Business & Finance

Am I doing compounding value stock picking right? I studied Lynch and various valuation methods for about 48 hours straight and then did this:

- I find stocks with year on year positive revenue/profit growth

- then I make sure they have a Piotroski f-score of 7-9 (backtests show this outperforms s&p500)

- then I make sure they have good Discounted Cash Flow and Peter Lynch Fair Value (stock currently not overpriced)

- Finally I make sure they have a Return on Incremental Invested Capital (ROIIC) that is very good and/or grows as you move from 5y to 3y to 1y

Pic related are my stocks so far while I wait for more cash. They are in transport, packing (cardboard boxes etc), igaming, also bought Chubb and Baidu. Gonna buy some Mastercard also soon. I'm doing coffee can style, just buy and forget unless their fundamentals really change up on me.