Choosing companies to invest in - question to Jacob

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Simon
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Post by Simon »

Hi Jacob,
Do you think you could write down you thinking and analysis when you go about analyzing a company for investment. As in the detailed steps you take, your reasoning, and conclusions.
One more thing, since so much of ERE revolves around investment, shouldn't we have a section looking at particular stock ideas? I think it would be very educational.


jacob
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Post by jacob »

I would say, no I could not easily write that down since a lot of it depends on material pulled from many different sources, my overall understanding of whether the economy is going, the ratios and leverage of the company, etc. Besides, there are blogs that do a much better job at that than I do. Check out seekingalpha.com

For a good book on a step by step analysis which includes numbers (although growth oriented) check out Phil Town's PayItBack.
I would say in terms of investments I'm at the same stay as I was with regards to the spending side on ERE before I wrote the book. I have an intuitive understanding of the principles and I basically know the technicalities---what I do not have is a cohesive formulation of those principles. This is something I will start thinking more about in the near future.
Very little about ERE actually depends on your choice of investments. The key factor is a massive accumulation of savings. You could do it with index funds if you wanted to.


JohnnyH
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Post by JohnnyH »

Yes, we all seem to be 1 community as far as maximizing savings and minimizing expenses... But I bet there are dozens of different types of investors on here.
Plenty of right ways to invest and it's hard to be an expert on more than just a few.


George the original one
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Post by George the original one »

There are indeed DOZENS of different types on here, from a daytrader to buy&hold index funds to "I've got a bunch of money in CDs that I'd like to invest and don't know where to begin"


jeremymday
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Post by jeremymday »

I believe Jacob previously suggest the Dogs of the Dow strategy. http://www.dogsofthedow.com/
I plan on following this strategy come December or January.
With all that being said, I might start a new thread for this...
Cheers,

Jeremy


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