How to create a list of stock candidates
May 16, 2021
As we wrote in the last blog entry, if Warren Buffett had started again today he would probably start by looking through all the small companies, and starting with the letter A in the list.
How can you get such a list of stocks?
We are affiliated with borsdata.se, and we can recommend using that platform to create a stock list for you to start with. Their platform collects financial data from many countries and for several financial instruments. It has a larger selection than Nordnet for example.
Warren Buffett is known for not using a computer, and he just sits all day and reads annual reports that he has printed out. If you have time for that, and you have a great memory, we wouldn't mind trying that out as well. But for now, we think we get a lot of information of high quality and information that we search for quicker by using a platform such as this one.
Lets say you're interested in searching for stocks. Börsdata has list of 18,381 stocks for you to search through. If you are interested in indexes, it will show you a list of 133 indexes that you can invest in. You can also get a list of 24 different commodities.
You can search for stocks within a certain country
Börsdata allows you to filter out your stock selection on country. It has all the Scandinavian countries, even Iceland, as well as a large selection of other countries as you can see in the picture below.
Just in Sweden for example, there are 929 stocks in Börsdata's list.
Filtering companies based on industry and sector
If you are an investor interested in looking at Swedish companies that are involved in a particular industry, you could also narrow your list even further. For example Börsdata can show you industries such as Energy, Utilities, Materials, Food and Beverage, Consumer Durables, Industrials, Health Care, Financials, Technology and Telecom. The platform would give you a list of 35 companies within the Food and Beverage industry for example, and you could even narrow it down to just the sector of Farming, which would produce a small list of just three companies.
The Swedish stock exchange is known for a lot of gambling and casino companies. Here you have the list the Börsdata shows for the sector.
Once you're happy about the list and want to save it for later, Börsdata also gives you a feature where you can save the list.
Once you have the list of stocks you are interested in you can continue to screen out and rank for different parameters. We'll write more about that in another post.
We are currently doing research of different companies, and we're working on a watchlist that we'd like to share with you once it's ready for release. The method of following a watchlist is one of the best we have that has helped us get a quite good and consistent return in the stock market.
