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I find most of my investments through 2 methods: general news as an indicator of future growth prospects, and through industry stalking. I am primarily interes
by goosmurf 16y ago
I find most of my investments through 2 methods: general news as an indicator of future growth prospects, and through industry stalking. I am primarily interested in high capital growth and mostly invest in an industry peripherally related to my own work which I can keep tabs on through industry contacts (i.e. who's hot, who's not).
In both cases those methods yield potential investments which I then look at financials as a basic check - does this company's balance sheet and P&L indicate anything obviously dodgy? More importantly, do their accounts offer any insight as to how their business is actually going; in many cases I find this is not the case as through sufficient accounting manipulation little reflection of reality is left in the reported figures.
In terms of your service what I would like to see is some sort of graph of executive management & directors and their histories. I have a personal blacklist of individuals based on their ability to ruin companies, and I also have a few folks that I basically would invest in anything they do. This is largely industry specific though not always the case as there are folks from finance & legal backgrounds who end up being chairmen or directors across a wide variety of industries; this can be good for finding investments in new industries.
Another thing is the company's history, particularly (but not limited to) the balance sheet. In some cases future prospects look great but the company has burnt existing investors through heavily dilutive raisings (as an example). These holders will suppress any rise in price so for me that is a reason to stay clear despite everything else.
You asked about "before" but on-going is also important. For the small (speculative) companies that I invest in I try to stalk most of their staff; in particular I want to know if key members of staff leave (not necessarily executives); or if there is unusually high turnover. Tools like LinkedIn and Twitter have made this a lot easier but it would be great if it could be automated.