OUR APPROACH AND METHODOLOGY
AI-powered research combined with time-tested principles to help individual investors beat the market
HOW OUR ALGORITHMS WORK
Data Collection
We analyze vast amounts of data from Standard & Poor's, Nasdaq, NYSE, and leading investment banks. We also parse company documents, SEC filings, earnings transcripts, and news articles.
AI Analysis
Our algorithms analyze company-specific KPIs, revenue quality, operating profitability, customer retention, and dozens of other metrics multiple times daily.
Quality Assessment
Using historical data and sector-specific models, we identify businesses with durable competitive advantages and strong fundamentals.
Valuation Check
We use quality-adjusted relative value approach to find companies where quality justifies the price or reveals undervalued opportunities.
HOW DO WE APPROACH INVESTING?
Stock of the Month combines AI-driven insights with human expertise to identify and invest in high-quality companies at attractive valuations.
Focus on industry leaders with durable competitive advantages
Identify companies that can maintain strength even in challenging markets
Uncover long-term investment opportunities—companies to hold for 5+ years
Steer clear of underperforming or struggling stocks
Financial Metrics
Free cash flow generation and trends
Revenue quality (recurring vs one-off)
Gross margins and operating profitability
Balance sheet strength and debt levels
Operational Metrics
Customer retention and churn rates
Sales cycle speed and efficiency
Inventory trends and turnover
Average revenue per user over time
WHAT DATA DO WE ANALYZE?
We are good with numbers
Total returns
(25-26)
92%
Vs
42% from S&P 500
Annualized Returns
14%
Vs
8% from S&P 500
Stocks with Losses
5 of 24
HOW DO WE ANALYZE DATA?
Finding Mismatch Opportunities
Since we can assess the quality of every business in a given sector, we can analyze the mismatch between quality and price, and at times we find there are undervalued opportunities in the market.
Sector-Specific Metrics
For every sector we cover, we pick the most useful valuation method. Sometimes it's one metric like forward P/E, P/S, or EV/EBITDA, and sometimes it's a combination of different metrics based on current and historical figures.
Quality-Adjusted Relative Value
We believe that price is what you pay, and quality is what you get. Some companies trade at higher valuation multiples than others. The question investors should ask is whether the premium/discount in business quality justifies the premium/discount in price.