Hello guys,
I am planning on applying to my school's investment fund and one of the requirements is to create a 3-page stock pitch. I have a lot of companies that I am interested in, however, I do not know how to pick a good company to pitch, especially since I have so many options. Does anyone have any advice on how to find an interesting enough company to stand out but with enough information available to properly back my prediction? Thank you
Research fundamental analysis and learn how to spot potentially undervalued companies
Seeking Alpha has alot of investment pitches, you can read a bunch and if you agree with the analysis of a specific company, dive a bit deeper into it yourself using equity research notes
This is the best answer - a $30/month subscription to seeking alpha will invariably boost your performance in idea generation
Do what others said here. also check out ValueInvestorClub, tons of awesome write-ups, there is a 3-month lag but value investors are long-term oriented that most ideas still actionable.
Another laborious way is to pick a sub-industry that 1) you are passionate about 2) is not too complicated to understand and "cover" all the companies in that sub-industry: see how they differ in strategy, why the margins / growth / ROIC / capex / operating expenses are different, and form a view on what is a good business and bad business, and form a view on which business is undervalued and overvalued.
The sub-industry thing is great, especially for conversations in interviews. Being able to pitch a few companies off the cuff in an interview because of your awareness of the industry is a really cool thing.
Yah, particularly applicable to TMT because every company in a TMT sub-industry is somewhat different (unlike say, 5 publicly traded paper makers - great, we make paper, maybe one is vertically integrated, the other one claims to have a more durable paper, but at the end, they all just make paper). So understanding the nuances matters and over time you see why certain strategy, product-market fit impacts growth and margin, and why one strategy gains share while the other loses share, etc.
Pick one you like so its easier
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