InvestIdeas

1. Invest in high margin companies that dominate their business.
2. Companies that have margin expansion tend to post bigger earnings surprises
3. Invest in companies with strong forecasted sales and earnings
4. Look for companies that see positive analyst revisions in the past three months, as these typically post earnings surprises.
5. If you’re a dividend investor, focus on companies that are consistently raising their dividends.

Thrift Shop Fallacy – when investors are irrationally attracted to stocks with lower share prices over stocks with higher share prices.

Because most people plan on buying stocks as long-term investments, the order of importance of the five things you have to have should be:

1. The company must have products or services that can fill a gigantic addressable market and be the best or among the best at it… or be a disruptor on their way to changing the space.

2. Revenue, profit margins, and profits – what analysts call “earnings,” in sum. They matter.

3. Capital structure matters a lot more than most people think, because there are critical clues to a company’s prospects in its capital structure.

4. Intrinsic value, which is an assessment of a company or its stock in terms of traders’ and investors’ perception of the company and its prospects. Narratives relating to the company, and behavioral investing factors that stem from an assessment of intrinsic value (as opposed to market value) are akin to a secret sauce that if present (or better yet, persistent) can catapult a stock.

5. The picture of investor psychology manifested through price action, captured in charts, has to be corroborative.

Investment Advice From the Grave Dancer, Sam Zell:-
1. Diversify
2. Never overpay for anything
3. Have fun!