How I Research Stocks: Tencent Music (TME) Example | Ep. 31
In today's video, I'll walk you through my process on how I find and research quality stocks. My goal as an investor is to be as objective and grounded in my thinking. I want to base my convictions on as much information as available to me. I will be using Tencent Music Entertainment (TME) for the example on the 7 questions I always ask myself on whether or not I avoid a stock, add it to my watch list, or try to initiate a position or continue to build that position as much as possible. The initial stages are always the most time and effort but are the most important which helps you be aware of catalysts for growth, potential risk factors, and finding stock prices you're comfortable with.
The 7 questions are:
1. Do I understand this company? Can I explain in-depth to someone what this company does?
2. What is the future outlook of this company? What are the catalysts for growth?
Do I believe this company can build a strong moat even with the tough competition?
3. How does this company make money? What are their revenues? Are the revenues trending up?
4. What are the risk factors this company may face? (ex. If this company pays a dividend, and another pandemic happened, will this company likely cut its dividend?)
5. Do I believe in the company’s leadership team?
6. How long do I want to hold this stock? What is my time horizon?
7. Do I have conviction buying, owning, and tracking this stock long-term?
Timestamp
0:00 - Introduction
0:42 - #1 Company Overview
2:42 - #2 Company Outlook
5:14 - #3 Company Revenues
7:10 - #4 Risk Factors
8:36 - #5 Company Leadership
9:28 - #6 Time Horizon
10:29 - #7 Conviction
Want to follow my investing journey? Check out the Strategies Portfolio Spreadsheet: https://docs.google.com/spreadsheets/...
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Thanks for watching! Till next time.
Disclaimer: All information provided on this channel is for entertainment purposes only. Always do your due diligence and speak with a licensed professional.