There are thousands of companies listed in most stock exchanges around the world. As your investment manager, our task is to buy stock in the best, strongest companies among the thousands so that you can earn compounding returns over time.
We do this to follow a defined process that results in a strong selection of high-quality stocks. First, we programmatically run through all the stocks on the public market, picking out those with a strong presence or interest from prominent fund managers with research budgets and networks to be considered “smart money”. Second, when we filter out the top few over-represented stocks within smart money circles, we filter on objective measures like margins, growth rate and valuation multiples.
By the time we get to a list of 5 stocks, we then go back into fundamental research by running through a list of “indicators.” These include:
- Do we understand this industry or business?
- What are the levers that drive performance in the business?
- How big is the market?
- What is their competitive edge or advantage?
- Do they have pricing power?
- How do they make money?
- Are the managers competent, expert and effective?
- What is this company culture?
- How are they going to grow? How cheaply or expensively?
- Will we be willing to have you hold this stock for 20+ years.
By the time we have answers to these questions, we feel confident that we understand this business we want to invest in. And if the answers are overwhelmingly positive, then we buy continuously for as long as we can.
Then we review every quarter to either add to or remove companies to the portfolio.
By adopting this strategy, we have built a strong stock portfolio that has beaten the S&P 500 and grown our users’ investments. Our goal is to continue to increase the quality of our portfolio over time which should help us continue to pick the best stocks to invest in that will make a meaningful difference to the wealth of our users.
Join Rise today to get access to superior, stress-free wealth management.
With love and returns,