“What to buy next?”
Almost every month, I ask myself this same question whenever my salary arrives or when a good amount of dividends have accumulated.
When I first started investing, I wanted a diversified portfolio which is why I built the tool, iSuggest (iSuggest is free for all registered users). It worked well at first, as it quickly brought my portfolio risk down to a minimum. However, for those who are familiar with the modern portfolio theory, there is a limit to how much risk you can eliminate by diversifying.
Soon, it appeared any stock I bought would not significantly increase or reduce my portfolio risk. This is actually where things gets interesting. It’s basically telling me that I can go ahead and buy any stock I want without having to worry! However, there are several hundred listings in SGX; what should I buy next?
I started to hack up a new tool, Screener, for myself to identify stocks based on various approaches (value investing, growth investing, income investing, etc). Today, I am elated to share that Screener is now freely available for use by everyone.
Screener will rank stocks based on various metrics you choose. To help you get started, I created three basic profiles, namely “John Neff”, “Growth Profile”, and “Income Profile” with different metrics selected. Of course, everyone has their own view as to what constitutes a value, growth, or income stock. Therefore, I have also incorporated the ability to easily build your own profile of metrics to rank stocks. Currently, there are 15 different metrics for you to choose from to form your custom profile. You can learn more about Screener and its metrics here. I’d be happy to receive feedback as to what other metrics I can add to help you.