PREVIOUS POSTS IN THIS SERIES Part 6: The Path to Scaled and Profitable Part 5: Numbers into the Google Sheet Part 4: Information Sources Part 3: Journalist Lawyer Scientist Part 2: Finding Stocks Part 1: Introduction This is Part 7 of the series on analyzing growth stocks. Here I will discuss the main four characteristics…
MY JOURNEY TO FINANCIAL FREEDOM Those who have read my posts over the years know that I started planning and striving for financial freedom shortly after I graduated from the university. It was a 15-year journey that required planning, work, discipline, and learning, and in 2007 I decided to quit my day job. I’ve written…
This is Part 6 in a series about analyzing growth stocks. I had intended on Part 6 being about various financial and other metrics that are important for monitoring the progress of a growth company. However, when thinking about this next post, I decided to first write how to analyze a business’s progress in scaling…
This is Part 5 of the series on analyzing growth stocks. Here I will focus on retrieving and entering the relevant numbers from the sources described in Part 4. The post will not cover explanations about or reasons for which data I choose to include in my tracking spreadsheet. The data the I track can…
This is Part 4 of the series of posts on my process for selecting and investing in growth stocks. The previous posts can be found here: Part 3: Journalist Lawyer Scientist Part 2: Finding Stocks Part 1: Introduction In Part 2, I detailed how I find leads for stocks to analyze. Let’s assume we’ve identified…
Growth stocks are by nature more volatile than slower growing companies. Hyper growth stocks (stocks with >40% revenue growth) are even more so. High quality companies that dominate their industries/markets often seem way overvalued by conventional valuation methods. And if one owns a portfolio of exclusively hyper growth stocks or one that’s largely dominated by…
This is Part 3 of a series of posts that I’m writing to share my process for selecting and investing in growth stocks. The previous posts can be found here: Part 2: Finding Stocks Part 1: Introduction My third post in this series was going to be about the information that I retrieve and where…
This is Part 2 of a series of posts that I’m writing to share my process for selecting and investing in growth stocks. Part 1 was just a short introduction. In this post, I’ll focus on how I find growth stocks to analyze. I’m looking for stocks that I believe will outperform the market. On…
The only reason to invest in individual stocks is to beat the average, which I’ll define as the S&P 500 index. Otherwise, the index can be bought without having to expend a single ounce of thought and effort. Anybody reading this post is most likely interested in beating the average, and, as I wrote about…
Have you ever delayed selling a stock because you wanted to wait until that stock’s price climbed back up to your purchase price? If so, you’re probably incurring a cost: opportunity cost is forgoing the next best investment. Sometimes that next best investment can be better than the one that you still own. For example,…