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Number of companies analyzed a week


Shane
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Some people like Jeff Auxier seem to be able, without much help, analyze 20+ companies a week.  I do not completely analyze my stocks (I'm not competent at valuation models yet), but I do lots of due diligence on management... It could take me 2 weeks to feel comfortable that I know their 5 year history!  Granted I only do this for 1-2 hours a day in my free time... but given I was wondering how many equities you all go through in a week?

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For me it depends I have a 3 step process:

 

-Gross check: 200 in 4-5 hours, returns 5% to go to medium check

-Medium check: 1 per hour, return 20% to go to final check

-Final check: 15 Hour per final company, return 30% that I buy.

 

My gross check, evaluates if I can understand the company, it's cash flow, balance sheet and if I can value it.

 

My medium check evaluates management, the reliability of cash flow, if I still understand the business. If it passes then I place a target price.

 

My final check happens when the stock reaches my target price. Then due diligence becomes very focused. I go trough a 80 points checklist.

 

So all round I spend about 80-100 hours to find 1 stock. 1 hour per day, so we are talking maybe 3 stocks per year.

 

BeerBaron

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I cheat. 80% of my ideas come prescreened  ;D by the best professionals money can buy and some really sharp non professionals. With that said I analyze very few stocks a week. I review 2-3 dozens though and only look at cheap ideas that have the right risk reward for me. I probably move in and out of maybe 20 ideas a year.

 

I have a 9/5 though so I get it how I can.

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