📚 How to Research Stocks – Beginner’s Guide
Here’s the content created from the video
“How to Research Stocks” (video ID: EiiXpecOkwY), along with a
concise summary.
How to Research Stocks – a Beginner’s
Guide
🎬
Video Overview
The video offers a beginner‑friendly guide to researching stocks
effectively. It breaks down the process step by step, from screening
potential companies to performing fundamental analysis and evaluating
investment quality.
📌
Key Topics Covered
1. Why Research Stocks
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Explains the importance of due diligence before investing.
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Emphasizes that investing in a stock is essentially investing in a
business (YouTube).
2. Stock Screening Strategies
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Introduces tools like screeners to narrow down thousands of stocks.
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Filters based on market cap, sector, valuation metrics, and financial
strength.
3. Financial Statement Analysis
- Key metrics explored include:
- Revenue & Earnings growth
- Profit margins
- Return on Equity (ROE)
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Debt levels and balance sheet health
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Encourages comparing these metrics with peers and industry averages (YouTube,
analytics.phe.gov.uk).
4. Valuation Metrics
- Discusses common valuation tools:
- P/E (Price-to-Earnings) ratio
- P/B (Price-to-Book) ratio
- Free Cash Flow yield
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Helps assess whether a stock is undervalued relative to peers (YouTube).
5. Qualitative Analysis
- Importance of understanding:
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Company business model and competitive advantage
- Market dynamics and risks
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Management quality and corporate governance
6. Final Deep Dive
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Once a shortlist is built (e.g., 20–30 candidates), perform deeper
research:
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Read annual/quarterly filings (e.g. 10‑K)
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Review analyst reports, news, and press releases
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Understand future growth drivers and risks (analytics.phe.gov.uk,
YouTube,
YouTube,
arxiv.org)
7. Risk Management & Mental Framework
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Advocates investing like a business owner—not chasing hype.
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Emphasizes long‑term thinking, margin of safety, and diversification.
📝 Summary Table
| Step | Description |
|---|---|
| 1. Screen | Use filters to shortlist stocks by financial criteria |
| 2. Analyze Financials | Check growth, profitability, balance sheet strength |
| 3. Valuation | Use ratios to assess if price is justified |
| 4. Qualitative Insight | Assess business model, competition, management |
| 5. Deep Dive | Read filings, news, forecasts; evaluate risks |
| 6. Decision Making | Ensure long-term mindset and strong rationale |
✅ Why This Guide Is Useful:
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Offers a systematic, replicable process—from thousands of stocks to
an investable shortlist.
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Focuses on fundamental analysis, avoiding speculation mindset.
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Aims to cultivate long-term investing discipline.