What is a Stock Selection Guide?

PUBLISHED Dec 28, 2022, 5:58:35 PM        SHARE

img
imgChaster Johnson

I interviewed Bob Wynn of ClimbUSA.org in December 2022. Check out that interview here:

https://youtu.be/Y9WSGp2uK-Q

What is a stock selection guide?

The stock selection guide is a stock picking methodology created by BetterInvesting™.

The title really helps to define what it is. Stocks are sort of like people. There are some that are good and there are some that are not so good. We have discerned our own methodology to determine if a person is good based on the metrics that we set in terms of a person being polite, intelligent, and respectful. For stocks we have that too. It is very simple for stocks because it boils down to what Bob Wynn tells his 8th grade climb youth leaders: that sales drives earnings, and earnings drive the stock price.

Ultimately, we are looking for an increase in the stock price of those companies that we buy. To do this, we must buy low and sell high. The stock selection guide takes us into an in-depth analysis of the historical sales trends of companies and in turn looks at the earnings that are derived from those sales and it’s those stocks that have the consistent upwards trends that are manifest through our stock selection guide process.

Why Should a New Investor Try the Stock Selection Guide (SSG)?

There are different strategies to use to invest like momentum, value, technical analysis. When working with young people, Bob would use a sports analogy. He tells them that a coach that is worth their salt is not going to teach them the alley-oop before they teach you the lay-up. The SSG keeps you in the lane of investing basics and it does track with the main methodology which is called fundamental analysis. Fundamental analysis is the layup level of learning about stock investing. It is ill advised to learn too much to quickly. It is important to nail down the fundamentals of how to analyze companies before you get into more sophisticated analytical methodologies.

Taking a Lay-up

Image by Varun Kulkarni from Pixabay. You need to learn a lay-up before you learn the alley-oop. The Stock Selection Guide helps new users learn the fundamentals of investing

How Can New Investors Prepare Before Using a Stock Selection Guide?

This is the reason why climbUSA.org compliments BetterInvesting™. There are some basics that people should learn before they engage in a stock selection guide. First off, there is terminology in business that, just like in sports or other disciplines, that you need to learn and be familiar with so that you can grapple with the tools of the SSG.

Read More: betterInvesting.org terminology and resources

The other is to learn about data sources. The SSG needs data feeds: the real time information that comes in about stocks and their trends like earnings. Its helpful to get familiar with these resources like:

When new users go to learn the SSG, these individuals will be prepared to use the SSG.

How Does ClimbUSA.org Compliment the Stock Selection Guide?

Historically, BetterInvesting™ has worked a lot with the adult population. When Bob learned about investing, especially the power of compounding returns, it was imperative that he begin to acquaint younger people with the process of investing and to help them understand why it is important that they grasp the understanding and put it into practice at an early age.
In learning about the SSG, you’ll learn that there is a strict correlation between the rate of return and the time in which you can double your money. And if you think about the fact that in our life span, we only have a finite number of times that we can double our money, especially if we are assuming a rate of return as high as 15% annually (which is as high as you should ever assume). Its going to mean that you can double your money every 5 years.

Why investing early is important

Investing $25 a month and starting at different ages. If you start when you are 18, you will have over $3 million in your portfolio when you are 70. This assumes a 15% return annually.

If you live to be 100 years old, you can double your money a maximum 20 times, but more realistically 15 doubles is the best you could do. Think of those last two doubles, if you are 65 and you have $250k, at 70 you have $500k, then at 75 you have $1million. Where are you when you only have two more doubles left? Therefore, the earlier you get started the better off you will be.
This is all assuming the health of our economy. And that is why it’s so important that you listen in to what is going on with geopolitics and global economic data. Because our companies we invest in will do no better than the global economy as a whole. And assuming the economy continues to grow around the globe, there will be opportunities for companies to grow in turn. And if you’re an investor in those companies you have that opportunity as well.

Read More: The Latest Macroeconomic News and Analysis

So, climb is really dedicated to reaching youth and reaching those adults who serve youth especially those that come from historically underserved population groups and getting people oriented towards what we call the economic way of thinking, which includes investing but it also includes understanding the lifestyle of successful careerists as well.

Final Thoughts

The Stock Selection Guide gives new investors a methodology to assess a stock’s fundamentals to make a better investment decision. Before a new investor starts with an SSG, they should take some time to learn business terminology and get familiar with stock data sources.

For youth, climbUSA.org is helping to organize, teach, and raise awareness of “Community Based Investment Enterprises”. These are community investment clubs that help youth get into investing and use stock selection guides.

Learn More

Help us get more youth investing at climbUSA.org Want to try the stock selection guide? Check out https://www.betterinvesting.org/ Try a 90 day free trial of BetterInvesting! Get your free trial here: https://bit.ly/3gM1uyX Find the top SSG analysis on the SSG Topics Page

Check out our companion video where I interview Bob Wynn here: https://youtu.be/Y9WSGp2uK-Q



Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
The Top Value Investments
Image

These are the top value stock ideas picked by the top investors on the platform.

The Top Financial News and Analysis
Image

The top articles and commentary on recent and relevant financial, economic, and business news.

The Top Macroeconomic News and Analysis
Image

The articles and commentary on world macroeconomics that are relevant now

The Top Stocks Analyzed Using the Stock Selection Guide (SSG)
Image

These top stocks were analyzed using the stock selection guide and picked by the top investors on the platform.

Is Entergy Corp a Buy?
Image

Entergy is trading at a significantly lower valuation than its competitors. As a result, the company is currently undervalued, and better to buy it. Read more.

Is Exelon a Buy?
Image

Exelon Corp. ( EXC ) is getting a lot of attention these days, with analysts and investors trying to figure out if the company is worthy. Read more!

Is Constellation Energy a Buy?
Image

Constellation Energy is not recommended as a buy based on its current price, its negative margins, and its aging fleet of nuclear power plants.

Dividend Income Summary: Lanny’s November 2022 Summary
Image

This is what dividend investing is all about! Investing in dividend stocks allows YOU to earn dividend income, the best passive income stream! Bias, you better believe it.

Dividend Kings In Focus: Northwest Natural Gas
Image

Utility stocks are often associated with long histories of paying dividends to shareholders. Their relatively predictable earnings and recession resistance combine to make increasing dividends somewhat easier over the long term than a business that is highly cyclical.

3 Recession Proof Stocks with Low Volatility
Image

3 Recession Proof Stocks with Low Volatility. The world is experiencing a wide range of macro troubles right now.

Bert’s December Dividend Stock Watch List: 3 Stocks to Buy!
Image

The final month of the year is usually an insane month for the holidays. Family, food, football….its the best! Let’s make sure that December is also going to be an excellent month for dividend investing as well.

December 2022 Stock Considerations
Image

With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases.

Which Utilities are Investing in Utility Scale Solar?
Image

We've researched the top public utilities in the U.S. to find the definitive leaders in solar power generation

Hershey (HSY): Dividend Stock Review
Image

Hershey (HSY): Dividend Stock Review. As a dividend growth Investor, the best companies to invest in are quality companies with a history of growing revenues and cash flow to enable them to increase their dividends over time.

10 Top Electric Utility Stocks For Reliable Dividends
Image

Utilities are often a favorite of dividend growth investors as they can provide excellent returns and high-income levels.

The Best Utility ETFs for Income Investors
Image

We breakdown the pros and cons of the most popular utility ETFs and rank them by the best ETF for income investors.

Warren Buffett Stocks: Louisiana-Pacific Corporation
Image

Louisiana-Pacific Corporation (LPX) is a leader in high-performance building solutions. The company manufactures engineered wood building products for builders, remodelers, and homeowners across the globe.

The Safest Utility Stocks to Invest in Q4 2022
Image

We found the top 5 safest utility stocks based on volatility, drawdown, dividend policy, and dividend cuts. Why are utilities safe? We'll explain why.

7 High Return-of-Capital REITs
Image

Real Estate Investment Trusts (i.e., “REITs”) are tax-advantaged income vehicles that have become increasingly popular with investors and institutions in recent years.

November 2022 Stock Considerations
Image

With a new trading month already in full swing it is time, once again, to highlight some of my potential stock purchases.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
user_profile
Wise Intelligent
user_profile
Tom Hamilton
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey