What is a Stock Selection Guide?

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

imgChaster Johnson

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


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
Japan Surprises

The Bank of Japan surprised everyone may lifting the 10-year yield curve cap to 0.50% from 0.25%.

The Top Value Investments

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

The Top Financial News and Analysis

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

The Top Macroeconomic News and Analysis

The articles and commentary on world macroeconomics that are relevant now

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

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

The Year Winding Down

Stock Market Commentary

Why is Book Value Important?

Book value is a investment metric that new investors need to understand. Book value gives investors an insight into a stock's intrinsic value.

Is Entergy Corp a Buy?

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?

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!

META Lesson 2: Accounting Inconsistencies and Consequences

In my last post I used Facebook's recent troubles to talk about the importance of corporate governance

How to Strengthen Your Four Walls of Budgeting

When you are in debt, it may feel like you are digging yourself deeper with every dollar you spend. And as the bills start mounting and collection agencies are pressuring you to pay, it’s easy to panic and forget your priorities. However, knowing the four walls of budgeting can help remind you what is most important in your budget. So if you are having a hard time making ends meet, here are a few ways you can strengthen your four walls of budgeting and get closer to your financial goals.

What Are The Best Stocks To Buy Now?

As an investor, one of the trickiest things to figure out is which stocks to buy and when. The holiday season and post-midterm climate alter the landscape a bit. Additionally, many companies are examining their year-end figures, with some exceeding recent expectations and others falling notably short. As a result, it’s hard to choose the right investments. If you’re trying to figure it out, here are some of the best stocks to buy now.

Let’s Debunk These Top 7 Credit Score Myths That Often Misguide You

Your credit history and credit score are how a lender determines your creditworthiness. A good credit score shows the lender that you have a lower risk. And a poor credit score implies otherwise. No time to read this now? Pin it for later. Today, there is a ton of information about the importance of your credit scores and the need to check them regularly. But you don’t have to check your score daily. That’s just a myth. There are other credit score myths out there, but this article will debunk the top seven credit myths.

Positioning to “Time” the Stock Market

You can’t time the market! Many have tried, and many have failed. But there is an acceptable way for investors to time the market: what about positioning assets rather than predicting the future? As the saying goes: time in the market is better than timing the market.

23+ Best Places To Buy Cheap Clothes [Updated]

You can buy cheap clothes and still look stylish. However, there is no denying that buying an array of clothing can be expensive. One way to cut costs is to buy second-hand clothes. But there are ways to buy new clothes without spending a fortune on your wardrobe if you want something new. This blog post will show you 15+ of the best places to buy cheap clothes.

Doves In Hawk Clothing

When the time comes, will central banks prioritise employment or inflation? The goals of central banks are price stability and maximum employment. For much of the last four decades there was little conflict between the two. Strong disinflationary forces meant that unemployment, outside of recessions, could be kept low.

Early Retirement Hindsight: What I Would’ve Done Differently

I feel truly blessed to have been able to pull off an early retirement. I take great pride in being able to take the leap at the age of 51. It came after a long career with a less than a 6 figure salary. Still, after experiencing early retirement for many years and knowing what I know now, I often think about what I would have done differently. Allow me to share my early retirement hindsight.

Making 2022 Feel Much Better

If you started investing in the S&P 500 over the past 5 years, 2022 has erased all your gains. This chart shows a portfolio that’s been dollar-cost averaging into the S&P 500 since the beginning of 2018. COVID caused a small speed bump, but the market quickly shrugged it off. By late 2021, this investor was up 80% over 4 years, or 16% per year.

Dividend Yield Is 2022’s Upside Outlier For Equity Factor Returns

The US equity market has been clawing back some of its losses recently, but reviewing results through a factor-risk lens shows dividend yield leading the field with the only positive performance for 2022, based on a set of ETF proxies.

Dividend Yield Is 2022’s Upside Outlier For Equity Factor Returns

The US equity market has been clawing back some of its losses recently, but reviewing results through a factor-risk lens shows dividend yield leading the field with the only positive performance for 2022, based on a set of ETF proxies.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin