Q: Will the new Investools Rule #1 Search turn up companies that have solid moats? I thought I saw some commodities in there.
A: Moat, Meaning, Management and Margin of Safety still all need to be evaluated. The search as defined by Investools is trying to look for consistency. It's a beginning and gives us a starting point that is interesting to play with. The businesses that made the cut look quite good — even the commodity businesses. (But remember that commodities don't have moats, and therefore don't pass the 4Ms.)
The search results are a starting point, whatever search you use. The idea is to reduce 14,000 possible businesses to a handful that you can really dig in on. This search gives us a different pile to dig through than other searches Investools has and is in the direction that we want to go.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.