Screen for High-Quality Ideas 💎

3 min read 🧠

Invest In Assets 📈

Apr 28, 2024

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How to find quality ideas 💡
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Finchat is a great tool for investors.

Using Finchat.io, we can screen for high-quality stock ideas easily and reliably. The most interesting stocks can be researched more deeply and become possible investments.

Step 1: Go to Finchat

Step 2: Go to the “Screener” section on the left side of the dashboard.

Step 3: Set your criteria:

ROIC 15% to infinity
Gross Profit Margin 40% to infinity
Operating Margin 10% to infinity
FCF / OFC 50% to infinity
Diluted EPS 5Y CAGR 8% to infinity
EBIT / Interest Expense 10% to infinity
Revenue 5Y CAGR 8% to infinity

Like this:

Step 4: Click “Run Screener”

The results will be sorted by market capitalization, you can always click the “Market Cap” section to sort it from lowest market cap instead of highest.

The list will be comprehensive and include many quality companies in our investable universe & watchlist:

You can sort by growth by clicking the “EPS 5Y CAGR” or “Revenue 5Y CAGR” tab at the top.

Keep in mind, that this will often bring forward cyclical companies, as they are in their phase of growth due to cyclical factors.

I’m not investing in Mining companies, or Oil & gas companies for example, as these are generally destroying shareholder value over time, and only making solid returns in certain years.

5 Companies I found using this screener (That I haven’t looked much into yet):

QT Group

QT provides its customers with software development tools. The technology is used in various devices and applications, including consumer electronics, vehicles, airplanes, and industrial automation applications.

10-Year share price CAGR: 43.98%

Airbnb

Airbnb is the world’s largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences.

10-Year share price CAGR: 3.12%

Investor AB

Investor AB is an industrial holding company with a long-term, active investment portfolio strategy. The company focuses on investing in companies that emphasize innovation and product development. Investor AB's so-called "buy-to-build" strategy seeks not to divest holdings, but rather to develop them over time to close the gap between price and value.

10-Year share price CAGR: 19.5%

Technology One

Technology One is a technology company providing enterprise resource planning software, primarily to governments, education institutions, and healthcare organizations in Australia, New Zealand, and the United Kingdom.

10-Year share price CAGR: 23.2%

Inter Parfums

Inter Parfums operates in the fragrance business and manufactures, markets, and distributes fragrances and fragrance-related products. Its top brands include JIMMY CHOO, bebe, Paul Smith, Abercrombie and Fitch, COACH,

10-Year share price CAGR: 16.2%

Finchat has a fantastic free product, but if you want to try the paid version, you can get a 15% discount using our affiliate link: Finchat.io/investinassets

Let me know if you found this post helpful in the comments below and leave a ❤!

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