How do I find new investment ideas?
There are plenty of shortcuts to new investment ideas,
but you're still the one who has to make the actual research effort

Role models and social media can only take you so far. The real work is still up to you.
There is no Holy Grail
The holy grail of screening results (cheap, high growth rate, enticing MELUDI industry, strong market position, low political risk, and a promising stock price chart in terms of relative level vs recent history and momentum at the same time) is rarely found in practice. Instead, try to come up with unexpected, unusual combinations for inspiration, and then continue to dig deeper into their financial accounts (P&L Income Statement, Balance Sheet, CF statement).
You need to practice and refine before making actual investments based on simple filter settings: So, screen, make hypothetical investments, and evaluate what worked well and what didn’t. Then experiment with your search methods to see if you can find better filter settings.
Money in the street? Nope.
Broad screening only turns up candidates for further research and forecasting. You can’t expect to find money in the street from simply looking for above average growth and below average valuation multiples! What you tend to find are value traps that are cheap for a good reason (but not always). Some gems actually are hidden in the Low P/E or Low P/S camp, but others hide in the High multiple lands, or in the boring middle. It all comes down to what the plausible expectation of durable future earnings growth is in relation to the valuation multiple.
HedgeFollow is a great place to start
As a complement to making the screening yourself, you can find inspiration in what others are buying in tools like HedgeFollow for example. There you’ll see what the biggest funds and professional investors are betting their and their clients’ money on. Note: Don’t follow their lead blindly (since they also make mistakes of course) but take their choices as a good starting point to make your own research.
You May Also Like These Articles:
- A Simple Checklist Before Investing a Lot of Money Amount into a Stock
- Does the Stock Have Any Competitive Advantage? (Moat)
P.S:
Weeks 2 and 3 of The Investing Course go into great detail about how to find new stocks with screening tools, online resources, and collect them for the long-term into category-specific Watchlists. It’s likely the best guide ever made on this subject.
