Analysis On Stocks

[robertbanking]

Hello you very amazing and wonderful people that make up this forum. I sincerely hope you are doing well and keeping positive.

I was reading an article recently that mentioned that Warren Buffett can spend about 15 minutes before making a decision on whether to buy a stock. However i know he has years of experience and by doing due diligence for many years, he will know exactly what makes a good investment. I kindly wondered please when analysing a stock or company, how many hours generally does it take you to research a company before coming to a buying decision please? Whether thats reading sections of their annual accounts, doing research on competition for instance. If you kindly had any advice on this i would be forever grateful and thankful.

Sending you lots of good wishes as always and i very much hope you achieve all your financial goals through investing. Wishing you lots of good luck and take care.

 

[Sean K]

Hello you very amazing and wonderful people that make up this forum. I sincerely hope you are doing well and keeping positive.

I was reading an article recently that mentioned that Warren Buffett can spend about 15 minutes before making a decision on whether to buy a stock. However i know he has years of experience and by doing due diligence for many years, he will know exactly what makes a good investment. I kindly wondered please when analysing a stock or company, how many hours generally does it take you to research a company before coming to a buying decision please? Whether thats reading sections of their annual accounts, doing research on competition for instance. If you kindly had any advice on this i would be forever grateful and thankful.

Sending you lots of good wishes as always and i very much hope you achieve all your financial goals through investing. Wishing you lots of good luck and take care.

Interesting question Robert. I don't think you'll get an average number.

It might depend very much on the type of investor/trader here Robert. I think most here are pretty short term traders and might make decisions in seconds to buy and sell based on TA.

If you're talking long term relatively passive investing it could be many many hours, weeks.

A lot might be buying off the 'top ten stocks to buy in 2023' out of the Fin.

As you say about Buffett, I doubt he makes a decision in 15 minutes. He might make a FID in 15 minutes, but he probably has 100 staff doing months of due diligence before they came to him with a miriad of briefs and presentations on the fundamentals of the company and macro economic environment before he might even go and meet with the management of said company to see if they were worth buying.

I like watching/reading The Big Short to see what Mark Baum/Steve Eisman did in investigating the housing market and CDOs before shorting the housing market. Travelling to Miami for a cuban sandwich and Vegas to talk to strippers as research seemed like a good play to me.

 

[divs4ever]

I like watching/reading The Big Short to see what Mark Baum/Steve Eisman did in investigating the housing market and CDOs before shorting the housing market. Travelling to Miami for a cuban sandwich and Vegas to talk to strippers as research seemed like a good play to me.

yes 'boots on the ground' ( rather than a share-holder tour ) has helped me pick some winners

you still need to know what to look for , staff morale , awareness of safety ( without creating a visual hazards with big signs ) staff working efficiently pair that with the available data , and you have a tiny edge ( or spot a monster red flag )

and yes the Big Short also helped me understand derivatives , and credit ( default ) swaps

 

[Smurf1976]

It might depend very much on the type of investor/trader

For my short term trading account it's a purely mechanical process.

The ASX300 is the universe of stocks considered, anything within that can be bought, and the process is purely mechanical. I'll buy a stock without knowing anything about the company, not even what industry it's in. Ultimately I'm looking at the market action and nothing else, albeit via some specific means of analysis and number crunching. Holding time for such stocks is generally pretty short - they're trades not a long term investment.

For a long term investment however it's the opposite. Usually I'm working backwards - identifying what industries to invest in, then looking for good companies relevant to it. Depending on how much I already know about the industry and companies, this can take quite some time - days or weeks potentially.

 

[galumay]

Its obviously different for speculators compared to investors, but I can spend months researching a company - and still decide not to take a position!! The current company I am researching I started looking at in March. But I am a long term investor and very inactive, I think I have added one new company to my portfolios this financial year.

 

[divs4ever]

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i look at forward earnings/guidance with 'grain of salt' but i do look at it

good luck