2 Wonderful Investment Tools to Pick High-Value Stocks with 1 Click
2 Wonderful Investment Tools to Pick High-Value Stocks with 1 Click
Warren Buffett’s investment principle of “buying a wonderful company at a fair price” and hold it for the long term may sound easy, but it is difficult to execute.
For one, we seldom have the patience and time to go over 10 years of annual reports of one company to analyze its financial standing and fundamental strengths. Financial statements full of figures are challenging for many investors.
Why people fail to follow Warren Buffett’s investment approach:
Reading financial statements requires accounting knowledge and considerable experience in order to cultivate a thorough understanding of a company’s operations. All of which is difficult for beginners.
There are hundreds or even thousands of companies on any single stock exchange. To find a wonderful company that would make a good investment, you'll need to read all of their financial statements to figure out which company qualifies as a great investment.
It is hard to evaluate the fair value of a company. There are so many formulas, variables and methods needed to be considered. Plus, you need to calculate the fair price for every single company in the market to find out the undervalued ones.
The company’s quarterly financial statements needed to be analyzed on a quarterly basis to make sure the company is still performing well and to check whether its fair price has changed.
If you are a value investors and looking for stocks that are growing every year for the last 10 (or even 25 years), you do not have to study over 7,000 companies like Warren Buffett did.
We are going to introduce an amazing tool which you can easily find 10 years’ data of any trading stocks with ease in clear manner and graphical presentation!
That is not all, I am also going to share a list showcasing dividend stocks which have been increasing their dividends at least once per year for at least the past 25 years to help you get started with!
Let’s get started!
Tool 1: Jitta
Jitta, a Bangkok-based fintech startup, simplifies financial analysis for us value investors. Their stock-analysis platform offers actionable advice to help them make better investment decisions and generate higher returns based on a simple principle: “Buy a wonderful company at a fair price.”
They took Buffett’s time-tested technique and give it a technological boost - so we can now have access to 10 years’ data of any trading stocks with the click of the mouse! How efficient that is when we want to know how the fundamental financials of a company is!
Their system processes millions of numbers from the financial statements and translates them into Jitta Score and Jitta Line, two plain-and-simple indicators to help you determine a “wonderful company at a fair price”.
The startup even claimed that “just invest in the first 30 stocks on Jitta Ranking and rebalance the portfolio once a year, you—and anyone—can achieve index-beating returns.” They have done a backtest - they buy the first 30 stocks on Jitta Ranking at the beginning of each year for equal amount of money, and sell everything at the end the year. The money earned from selling stocks would be reinvested at the start of the next year in the new Top 30 stocks. The result is a compounded annualized return of 17.01% since 2009 - not bad at all!
By the way, Jitta in Sanskrit means “setting your mind and focus on accomplishing a task”. It represents the mindfulness and consistency needed for investors to succeed in the long run. It is founded by a veteran value investor, an ex-Google executive and a full-stack developer.
Although I have only started using Jitta in my stock observation and analysis, it did not take me long to experience its convenience. Even if you do not trust its analysis, you can still do your own analysis much easier with this tool. The fact sheet function showed you the key matrices of a stock (such as revenue per share, earnings per share, dividend per share, gross profit etc) for 10 years. Finally we do not have to pull out the old, dusty annual report and look hard with glasses for the key figures!
Price: free (you only have to register with your email)
Link of Jitta: www.jitta.com
Tool 2: 25-Year Dividend Growers Stock List
To get you started easily, in case you have no idea which stock to begin analysing with jitta, I have found an extremely useful and convenient list which have around 100 selected stocks - these stocks have been increasing their dividends at least once per year for at least the past 25 years!
Dividend growth is one of the major indicators of a company’s profitability, and with increasing dividends across more than 25 years definitely is something to look into because the company is showing its long-term value.
These are stocks that we want to do our homework, observe and wait for the right time to buy if they fit our investment goals (if you are reading this article, probably you are looking for high value stocks that you can buy and hold for long term). This list would be an excellent place to start with, and the analysis cannot be easier with Jitta.
Link to the full list: https://www.dividend.com/dividend-stocks/25-year-dividend-increasing-stocks/#tm=3-25-years-increase-stocks&r=Webpage%231328&f_12=true&only=meta%2Cdata%2Cthead
Go ahead and play with these wonderful tools!
Stock picking has never been easier and more fun!
Note: this is not investment advice. I’m not financial planning professional. Just sharing what is working for me as part of my investing strategy or what I have learned on my investment journey. Please be reminded to do your own research and consider your own circumstances before making any financial decisions. You could also check with your financial professional to understand what would be best for your situation.
