If you want to beat the market in the long-term, you will have to be a contrarian investor and it is not that easy. Most of the stocks that people are talking about, the Teslas and the Apples, you have to ignore them.
The first way I find stocks is through proposals I get on YouTube, Facebook and even eToro. This is not something available to most people. But if several people ask me to look at a particular company several times, I will have a look at it. Just the general metrics first. Try to understand the valuation. Then, look at the business to see if it is in my circle of competence or not. One of the businesses that I invested in like this is Qudian $QD .
Warren Buffett $BRK.B takes a bottom up approach to investing. He waits for the proposals to come to him. But I use a top down approach. I look for economic, market and technological trends and then look for stocks that are cheap and can gain from these. For example, I saw the economic trend last year that if there's going to be a recession, the Fed will be forced to print money and I looked for gold miners as Gold prices $GOLD would definitely go up.
I also look for technological trends. The new console cycle is coming and Microsoft $MSFT and Sony were expensive and I invested in GameStop $GME instead since the reward can be much bigger.
Also I need to make sure that the stocks I'm buying has a low correlation with the rest of my portfolio. I don't want two stocks moving in the same direction all the time.
The last way, I find stocks is just by reading, on Yahoo Finance, Seeking Alpha, etc. Most of the stocks you'll find people talking about are bad investments but sometimes, you might find some good deals.
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