So I stole a blank sheet of paper from my laser printer and scribbled across the top, “Stocks I Like.” Then I went through every stack of paper, writing down the name of each company and a few measurements that were easily obtained from the paperwork. When the last piece of paper hit the floor, I had a list of 58 company profiles in front of me. Picture me looking at the sheet of paper as fairy dust sprinkled the air. What a revelation! Putting every company in the same place with the same measurements allowed me to instantly see which companies were most attractive. I scratched out the duds and gleefully whittled my list to a tidy group of 20 stocks. I’ve never looked back since. Now, whenever I encounter a stock tip in an article, a conversation, or on a bathroom wall, I simply find its worksheet measurements, compare it with the 20 stocks I’m watching, and see if it beats out any of the current 20. If not, I forget about it. If so, I strike the weakest of the 20 and replace it with the new stock. In the course of this simple process, I either save myself the hassle of reading a lot of material on a new company or I strengthen my list of potential investments.
from Jason Kelly – “The Neatest Little Guide to Stock Market Investing”