Finding the best stocks from the global stock market is like looking for a needle in a haystack. With the help of our Stocksifter tool, we can remove most of that haystack in a flash. This makes it easier to discover those golden needles.
Our proprietary Stocksifter tool analyzes the 65,000 companies that are available to us on the stock market on the basis of 20 criteria and then eliminates 95% of them. Our analysts can then dedicate their time to the best companies that have passed our stringent and systematic screening process.
The sifting process is done automatically. It is performed by Stocksifter, whose elimination criteria are updated regularly. Experience has shown that this sifting process must be systematic and, dare we say it, brutal. There is no room for emotions in this game.
During the comparison phase, our analysts go through the companies that survived the screening process by order of price. At this stage, our analysts place special emphasis on each company’s competitive advantage and their prerequisites for maintaining this advantage.
During the in-depth analysis stage, our analysts dive deep into each company’s revenue model, competitive edges, and competitors. Every single company at this stage is also reviewed by Sifter’s Investment Committee, and each analysis is supplemented according to the Committee’s instructions. Our analysts prepare an estimate on each company’s ability to make money 3–5 years into the future. We then compare our estimates with other analyses.
We only make 3–5 new investments every year. A company that is to be included in the Sifter Fund’s portfolio must be better than another pre-existing investment. These new investments are characterized by such factors as:
We want to own high-quality revenue models from across the globe. We believe that investing in 30 companies from different countries and sectors provides us with enough diversification. We do not care about stock market trends. The only thing that matters to us is the competitive advantage and money-making ability of our chosen companies. We monitor such factors as their return on capital, the development of their margins, the growth of their sales and continuous services, and the changes to their competitive landscape.