How do yall determine what companies that you want to look into? I see some of yall saying yall find companies when they were only a few dollars, but what determines the companies that you want to look in to?
First off, the answers that you have received are outstanding.
Here is my approach:
1. Determine the market environment. Right now, we are in a low interest rate bull market fueled by Fed policy.
2. Determine the government's priorities. Biden is interested in these areas: Covid vaccines, clean energy (including electric vehicles), stimulus. Look for opportunities in these areas.
3. Identify the disruptors in the hot sectors. I like the investing philosophy of Ark Invest. I try to read everything they put out. I am most interested in disruptive technogolies. As
@FabTrey mentioned, before investing in a company, I always ask "Who are they disrupting?
4. Identify SPACs in hot sectors early. Right now, SPAC IPOs are my favorite investing vehicle. Historically, SPACs are only popular in bull markets. Therefore, the SPAC game might only be hot for the next 2-3 years.
5. Look out for companies that will SPAC or IPO soon. I look at this list frequently. It is a list of leading private companies that might go public soon. I think 7-10 of the companies on this list are now public.
CNBC Disruptor 50
6. Then I do my DD. I read the investor documents, listen to the conference calls, and review the balance sheets.