Building upon this earlier post about searching for Rule #1 companies on Investools, here’s an email that came in last week from Jon. The parameters he’s using may be helpful to others using the software to research Rule #1 companies.
I was reading your recent post on searching using InvesTools. I did a similar type of search this weekend. I used the prosearch and these parameters:
5 year book value growth
1 year EPS growth
3 year EPS growth
5 year EPS growth
1 year sales growth
3 year sales growth
5 year sales growth
1 year cash flow growth
3 year cash flow growth
5 year cash flow growth
ROE (couldn’t find ROIC, so I used this instead)
This gave me 45 results. I used the trend analysis tool to quickly
weed out companies that weren’t very consistent, leaving me with 20. Of
those, I don’t need to do much more research on 3 – WFMI, PNRA, EXBD.
So, now I’m in the process of diving a little deeper into some of these. I’ll let you know if I find anything interesting.
On a side note, I really have to agree with you that the InvesTools
site has the best tools around. I’ve been looking at some other sites
on the web, and some have slicker looking charts or some other nice
whiz bang feature, but no one else seems to have all the really useful
stuff right there. The whole process above including going through each one and looking at the trend analysis took me about half an hour.
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.