The ‘magic’ formula for stock selection
- nihal123Top contributor
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The ‘magic’ formula for stock selection
- LeonTop contributor
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Re: The ‘magic’ formula for stock selection
- sereneTop contributor
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Re: The ‘magic’ formula for stock selection
Downloaded wanna read now.
- කිත්සිරි ද සිල්වාTop contributor
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Re: The ‘magic’ formula for stock selection
Thanks Nihal.
- nihal123Top contributor
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Re: The ‘magic’ formula for stock selection
කිත්සිරි ද සිල්වා wrote:I was wondering whether if any expert can use this formula and post something here soon (Like HUNTER's efforts).
Thanks Nihal.
Yes Kith any expert can do this for us
- Hybrid
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Re: The ‘magic’ formula for stock selection
For example take Nestlé. It has a high ROC and very high P/E ratio and now there is a nose dive in the share price suddenly due to the current disaster on quality issues its facing.
Yes, the future earnings potential and rate of RIG is a factor to be closely considered in addition to the said formulas!
- sereneTop contributor
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Re: The ‘magic’ formula for stock selection
nihal123 wrote:කිත්සිරි ද සිල්වා wrote:I was wondering whether if any expert can use this formula and post something here soon (Like HUNTER's efforts).
Thanks Nihal.
Yes Kith any expert can do this for us
Or may Be youth like Chooty
- HUNTERTop contributor
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Re: The ‘magic’ formula for stock selection
Thanks Nihal.
Had I found this couple of years ago, I wouldn't have spent time on reinventing the 'wheel'.
The idea explained is very similar to the one I have adopted.
I also agree the method sounds very simple and very effective; however, in reality, we need to be a little careful of 'extreme' cases to reduce the risk. (for example TWOD).
Combining this with some technical analysis, I am sure, will generate 'super' results in any market.
- First Guy
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Re: The ‘magic’ formula for stock selection
They wouldn't help identify stocks that are fairly valued on past performance but are poised to show growth in the near future.
They might also give a wrong picture to show a stock that is in a downtrend as one with an upside. Therefore, a formula should only be a starting point but more research needs to be done.
Similar to technical trading, it's rather a lagging indicator.