Upon clicking on STOCKS on the main page, you will be directed to stocks page, where you can either enter a specific stock ticker (or company name)
to search for the ticker or select from a convenient drop-down menu. The platform undertakes intricate calculations, requiring some time to deliver the results for that selected
stock. The Result Interpretation section comprises four informative tabs:
Summary Tab: This section zeroes in on crucial details, particularly the total annualized returns for the past 10, 5, and 3 years. It underscores the belief that companies
with robust business models and effective management should augment shareholder wealth, striving for returns exceeding 10%, in comparison to historical returns of the S&P 500.
Performance Tab: A comprehensive summary of business growth and profitability is presented in relation to its valuation. The tab not only offers insights into how these factors
align but also provides sensitivities to variations in growth and margin.
Back Testing Tab: Delving into the realm of hypothetical scenarios, this tab furnishes data-driven results depicting what might have transpired had a portfolio been constructed
based on the analyzed stock's features. It provides insights at both the portfolio and stock levels, with a bar chart illustrating the number of stocks available for investment
and a line chart showcasing the fluctuation in value over different time periods
Visualization: This is still under development. These charts display the change in valuation repeats past sentiments and products tracks past demand and operations tracks past performances.
Portfolio Building Steps
Select a Approach
Approach 1: Follow Data with Equal Importance: I lean on data-driven insights , giving equal weight to historical returns and performance-aligned valuations.
Approach 2: Consider Market Overreactions: Recognizing market overreactions, I rely on data but emphasize valuations aligned with performance.
Approach 3: Non-Expert, Data-Focused: As a non-expert, I lean on data-driven insights without specific emphasis on historical returns or valuations.
Determine Stock Fit Based on Approach
Approach 1 Evaluation
Verify historical returns (10, 5 and 3 years) align with your expected return requirements.
Confirm implied growth in the Performance tab aligns with current/past growth rates.
Assess losses under various growth scenarios , current margin and three-year average margin are within your risk tolerance.
Examine back-testing tab for possibilities of win, expected return, and losses to ensure that they are within your return and risk range.
Approach 2 Evaluation
Confirm implied growth in the Performance tab aligns with current/past growth rates.
Assess losses under various growth scenarios , current margin and three-year average margin are within your risk tolerance.
Examine back-testing tab for possibilities of win, expected return, and losses to ensure that they are within your return and risk range.
Approach 3 Evaluation
Examine back-testing tab for possibilities of win, expected return, and losses to ensure that they are within your return and risk range.
Review and Rebalance your Portfolio
Re-assess your portfolio so built every 3 months/ six months to identify stocks that still meet your criteria. Stocks not fitting your approach
have to be sold thereby providing opportunity to add new entrees to the portfolio that may have now fit your approach.