Please like and subscribe to my channel :)

Follow me on twitter:   / watchliststock  
Email me for mentoring : [email protected]

How to find Growth Stocks
One of the most famous book on investing is how to make money in stocks by william O’Neil.

William O’Neil started as a stock broker, (growth investing or investing in growth stocks) in Los Angeles back in 1958. He turned $5,000 into $200,000 in a year. He did not stop there and went on to become the youngest man to acquire a seat in the New york Stock Exchange.

William’O Neil developed one of the top growth stock picking formulas in the country and was bold enough to debate the merit of buy low sell high.

What helped him the most
He took a look at all the growth managers and tried to determine what the heck were they doing and used their portfolio disclosure to se when were they buying and selling and figure out Top growth managers were actually buying at similar points and were buying high and selling higher. He also figured out most of them were in fact chartist, based on their buys and sells. That was his first start.

Opinions don’t matter
If you start to look at analyst report and most of the stuff they had listed as buy was stuff he wouldn’t actually buy. Since most analyst don’t have skin in the game that is they don’t have their money on the line, their recommendations were as good as a flip coin.

He started looking at companies which had make big moves and he started companies having great earnings. If he had confident on the stock even though the stock came back sharply, he would still go on to hold it, cause after a bit of a turmoil it goes on to double.

On making the model book
He recognised why particular stocks were doing good and why were doing it. It gave him a model to see what were the fundamentals and what chart patterns did it make before they went to start making the big moves.

It’s about the fundamentals
First thing he looks at what are the earnings, prior earnings,going as far back as last 3 years and then he looks at the sales growth. He would look at the product.He won’t buy a company just because the chart looks good. He wants to make sure there is heavy demand of a particular product.

He is looking for company with the biggest earnings growth, sales growth, profit margins. Some of the big winners has 100-200% earnings growth in previous years.

Sports Analogy:
There is a reason why top elite players get paid so high every year, cause they are able to provide you x points a game on a consistent basis, more people come to watch them when they play. That’s the same thing with stocks.


CANSLIM
William O’Neil

Let’s take a look at few of the growth stock like NFLX (Netflix) , AMZN (amazon), GOOGL ( Google) , FIZZ (National Beverage), ETSY

William O’Neil, growth investing, growth stocks, CANSLIM how to make money in stocks