COSC: Concentrate On the Strongest Candidates
The best way to analyze stocks is to start with a large group of candidates and then eliminate the weakest contenders as soon as possible so that you can spend most of your time evaluating the strongest candidates.
In this chapter you’ll learn how to weed out the obvious misfits that aren’t worth considering. They may be firms that are mostly hype and don’t have real sales and earnings, or they simply may not fit your requirements. You should be able to eliminate most misfits in less than five minutes once you get the hang of it.
You’ll probably end up eliminating 15 out of every 20 candidates if they originated from tips from TV pundits, magazines, friends, and so forth, ...