CHAPTER 25

Where to Search for Stock Prospects

You learned about the stock research process in previous chapters, but before you start researching stocks, you need to identify stock prospects. There are many places you can find stock prospects and those places are explained in this chapter.

Value Line

Value Line (www.valueline.com) is one of the best places to search for stock prospects. Warren Buffett regularly uses Value Line to identify valuable stocks, as do I. When you get a subscription to Value Line, you are able to search for stock prospects where Warren Buffett is searching; both of you are on the same playing field. I suggest you subscribe to the following editions:

  • Value investment survey—Standard edition
  • Value investment survey—Small and mid-cap edition

The standard edition costs $538 and the small and mid-cap edition costs $255 annually. The total cost for both is $763 for a yearlong subscription. This money is well spent because you can find many great companies from these reports. You can get either paper or electronic versions, depending upon your preference. I subscribed to an online version so that I do not need to worry about keeping the old Value Line reports. Warren Buffett uses the paper version because he prefers not to use the computer for investment purposes. (The only thing he uses the computer for is to play bridge online with his buddies.)

Now we can delve into these reports that allow you to find great stocks.

Value Line Investment Survey—Standard Edition ...

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