GuruFocus.com : Become a better investor by learning from Guru Invesors.

“A guru (Sanskrit????) is one who is regarded as having great knowledge, wisdom and authority in a certain area, and who uses it to guide others (teacher)” – Wikipedia.com

GuruFocus.com is a value investing oriented website that focuses on the stock picks, portfolios and investing styles of Guru Investors. Independent columnists contribute good articles, stories and provide commentary on Guru holdings or changes in holdings. The site also has premium membership to access the portfolios and stock picks of other value managers, screeners and newsletters.

Screening for value: 

(1) 52 week lows: Investors often wonder what are the places to generate ideas for further research. Value investors often look at the 52 week lows list for ideas. GuruFocus has a free screener for the 52 week lows. Ofcourse, you can find this information in other publications and newspapers such as WSJ.
(2) Guru holdings: Another way is to look at the holdings of Guru Investors to see if you like a business that you understand and research further. This information can be found both on GuruFocus as well from MorningStar or by looking at the top holdings of a mutual fund.

(3) Insider buying: Many value investors believe that insider buying is a signal that investors and shareholders should watch for. Insiders could sell for a variety of reasons from needing cash for large expenses to diversifying their investments etc.  However, It is quite logical to assume that anyone who buys stock is expecting the stock to rise in value. Insiders are no different and since they have more information abotu the company and its potential their purchases should be watched for. GuruFocus tracks insider buying.

Remember that these lists should only serve as a starting point for your research. Once you find an interesting idea, you must study the company and its business further ( referred to as Fundamental analysis) 

Company due diligence: 
You can type in any symbol on GuruFocus and access the 10 year financials for the company. You can use the free DCF calculator to get an estimate of intrinsic value. You can see which Gurus own that company or have made trades. The 10 year valuations is available only for Premium subscribers. Also, the compare feature is pretty good and you can compare a company to its competitors.

The Internet has made investing democratic and there is a wealth of information that can be accessed by individual investors without having access to all the resources that large Institutional investors have.

    About Adib Motiwala

    Portfolio Manager at Motiwala Capital LLC
    This entry was posted in DCF, screener, Useful resources, value investing. Bookmark the permalink.

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