15. Quick Prequalify

There’s no point in wasting time analyzing stocks that don’t fit your investing strategy. In this chapter, you’ll learn how to rule out bad ideas early.

Concentrate on the Strongest Candidates

The best way to analyze stocks is to start with a large group of candidates and then eliminate the weakest contenders as soon as possible. This “survival of the fittest” strategy allows you to spend your time more efficiently by focusing on the strongest candidates.

In this chapter, you’ll learn how to weed out the obvious misfits early. They may be firms that are mostly hype and don’t have real sales and earnings, or they simply may not fit your requirements. You should be able to eliminate most bad ideas in less than five minutes ...

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