What Stock Spotlight is All About

Stock Spotlight is brought to you by the crew behind FinMasters. This is a newsletter built on the principles of value investing. It’s a strategy that often falls out of favor during rapid expansion phases, but it’s also a strategy that has stood the test of time and produced consistent gains in good times and bad. It’s a strategy ideally suited to long-term inventment.

This newsletter isn’t for everyone. If you’re looking for get-rich-quick schemes or exponential gains over the next year, you won’t find them here. You’ll find lots of others who promise them and very few that deliver them!

Our goal is simple: offer great analysis on companies with limited downside and strong potential for medium to long-term returns.

We don’t claim to be able to predict the market. Anyone who says they can do that is being less than honest. We believe that solid analysis based on tested principles can increase your probability of strong investment gains.

You could be the most “book smart” investor in the room and discuss investing theory, portfolio management, and analyze a hedge fund’s latest moves until the end of time. But at the end of the day, it’s all meaningless unless you can do something with that insight.

For this reason, we have created Stock Spotlight. We wanted to do the one thing that matters most in investing: analyzing and valuing companies.

Stock Research Reports

Each month we will pick a company to analyze. We will then screen the company by using Warren Buffett’s Four Investing Principles. If you are unfamiliar with what Warren Buffett looks for in a company, then you can check out our article on it here.

Here are Buffett’s four investing principles:

  1. A business that we can understand

  2. A business that has favorable long-term prospects

  3. A business that is operated by honest and competent people

  4. A business that is available at an attractive price

Pretty simple, right? By using this template, we will come out on the other side of each analysis knowing:

  1. An understanding of the company’s business model

  2. Whether the business model is sustainable or deteriorating 

  3. If the management is producing or destroying value for shareholders

  4. The company’s valuation

After going through these four principles, we will assign the stock a score depending on how well it screens through the principles. The perfect company will have a score of 4/4, while poor companies will have 0/4.

Valuation

For the valuation, we will use our own Discounted Cash Flow (DCF) model. While not every company should be valued the same way, I view the DCF model as the gold standard for any stock valuation.

Report Structure

Here’s the information you can expect in each report:

  • Qualitative Analysis

    • Overview and strategic analysis

    • Business operations

    • Economic moat analysis

    • Management effectiveness

    • Industry competition

  • Quantitative Analysis

    • Income Statement

    • Balance Sheet

    • Cash Flow Statement

    • Peer Comparison

  • Categorization and Valuation

    • Stock categorization and holding strategy

    • Multiple valuation methods (at least two)

  • Final Assessment

    • Company synthesis

    • Short-term projection (1-5 years)

    • Long-term projection (6-10 years)

    • Final thoughts

These reports are designed to be a starting point for your own research. They are intended to present investment options that are not widely discussed, often in sectors that are out of fashion and getting minimal attention.


Why subscribe?

Subscribe now for research, insight, and valuation of some of the most interesting and least known companies on the market.

A subscription gets you:

One in-depth stock reports a month (12/year)

Full library of premium content

Comment on posts and share in the community of people who share your interest

Founding Members

Our Founding Members will also be able to submit research requests to have their favorite companis analyzed.

Other services offer a lot more reports, but we believe in quality over quantity. You only need a few good ideas a year to be a successful investor. Our objective is to deliver you those good ideas.


Subscribe today to join over 9,000 like-minded investors!


If you are interested in classic value investing content with a modern approach and other great finance content then check out our main site FinMasters.


Disclaimer

None of the writers or contributors of Stock Spotlight are registered investment advisors, brokers/dealers, securities brokers, or financial planners. The information in our articles is provided for informational and educational purposes only.

The information is not intended to be and does not constitute financial advice or any other advice, is general in nature, and is not specific to you. Before using any article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence.

None of the information in our articles is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. The company is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.