I'm worried about my retirement, so I started investing in stocks DAY 55 [Specific steps for selecting stocks]

— Walking with Haru, Investment Record at Age 60, Day 55 —
If you narrow down the criteria, candidates will emerge

I have a small update.

I have opened three brokerage accounts in addition to Matsui Securities.

One is Rakuten Securities.
I wanted to try buying with small amounts using fractional shares, and the iSPEED app looked easy to use. That is the reason.

I also opened a Monex Securities account.
I learned that I needed an account to use the full features of the Stock Scouter I learned about on Day 47.

And PayPay Securities.
I found out I could use PayPay points directly for investing, so I decided to give it a try.

Putting what I've learned into practice.
That is the concept of this note.

I watched one video today as well.

The theme was "Specific steps for selecting stocks."

I have been learning about this since Day 38.

Business model, EPS, PER, representative, share buybacks.

So, how do you actually select stocks using that knowledge?

Today, I learned the specific steps for that.
And I actually tried it out on iSPEED.

📍 Current location on the roadmap

Why individual investors have an advantage over professionals (Day 54) → Specific steps for selecting stocks (Today) → Summary of fundamental analysis

📚 What I learned today: Proceed with stock selection in two stages

① First, narrow them down mechanically

It is not realistic to look at every single stock from the beginning.

First, set the criteria and mechanically narrow down the candidates.

These are the four criteria used for narrowing down.

━━ 2nd to 3rd year since listing

For companies that have just gone public, the effects of raised capital and increased brand awareness often start to appear in the numbers from the 2nd or 3rd year.

By targeting this period, there is a possibility of buying at the timing when growth begins to show in the numbers.

━━ Market capitalization of 50 billion yen or less

As learned in DAY 54, this is the world of small-cap stocks where institutional investors find it difficult to enter.

It is the battlefield for individual investors.

━━ Sales are growing

Choose companies where sales are growing before profits.

If sales are growing steadily, there is a possibility that profits will emerge in the future.

━━ PER of 100x or less

This is a guideline to exclude stocks that are too expensive.

② Tried it out in practice using iSPEED

The Rakuten Securities app iSPEED has a feature called "Super Screener."

Tapping Super Screener opens a screen where you can set various conditions.

The conditions set this time are as follows.

PER: 100x or less
Market capitalization: 50 billion yen or less (50,000 million yen)

Sales growth rate: 0% or higher (positive growth)
Listing date: June 2023 to June 2024 (stocks listed 2-3 years ago)

Searching with these 4 conditions narrowed it down to 102 results.

However, looking at the results list, there were several stocks where the stock price was displayed as '--'.

When I looked into it, they were stocks on a market called Tokyo Pro Market (TOKYO PRO).

TOKYO PRO is a market for professional investors, and general individual investors usually cannot trade there.

I added market (Prime, Standard, Growth only) and size (small-cap) conditions and searched again.

It became 67 items.

I was able to narrow down over 4,000 listed stocks to 67.

③ Visually scrutinize from the 67 items

It is difficult to further narrow down the 67 items using a screener.

This is because conditions like executive ownership ratio are not items in the screener.

From here on, I will check them visually.

The items to check are as follows.

Is there a medium-term management plan?
→ Check on the company's IR page or stock scout.

Is the president saying they will generate profit?
→ Check the president's statements on YouTube or IR videos.

Is it a business I can understand?
→ Can I fill in the 7 elements learned in DAY 50?

Is it a stock business or a nationwide expansion type?
→ Check if there is continuity and room for growth in sales.

President's shareholding ratio
→ Check in the shareholder composition of the stock scout.

④ The flow from stock selection to investment decision

The overall flow can be summarized as follows.

Mechanically narrow down using a screener (67 items)
↓
Examine visually
↓
Stock analysis (confirm the feasibility of EPS)
↓
Create a scenario (unannounced EPS x unannounced PER = future stock price)
↓
Investment decision

Everything I have learned since DAY 38 is included in this flow.

💬 Satsuki's questions and Haru's answers

🌸 Me: "Haru-san, 67 items still feels like a lot. Isn't it hard to check them visually?"

🌸 Me: "It's inconvenient that the executive ownership ratio isn't in the screener."

I actually tried it on iSPEED.

It took a little effort to set the conditions, but I was able to narrow it down to 67 items.

Along the way, I learned about the existence of a market called TOKYO PRO Market.
I hadn't realized that stocks that individual investors cannot trade were mixed in.

The moment the number of stocks went from over 4,000 to 67, it felt a bit more realistic.

From here, I will first look at one company that caught my eye.
That is the next step.

📝 Today's summary

Stock selection is a two-stage process.
Mechanically narrow down with a screener, then examine visually.

When I set the conditions in iSPEED's Super Screener, I was able to narrow it down to 67 items.

A screener is just an entrance.
In the end, you must check with your own eyes.

I watched the video, took notes, and summarized them into an article.
A total of 1 hour.

1 hour every day. That's all it takes.

I believe that consistency is my greatest talent.

Next time, I will actually select one company and examine it visually.

I will continue tomorrow as well.

📣 "Friends Walking with Haru" is currently in preparation.

I am creating a place where friends who have also started investing can
report their progress and support each other in staying consistent.

If you would like to join, please let me know in the comments 🌸

📚 Click here for related articles for DAY 55

https://note.com/satsuki_60/n/nbb89d8ed73ee

https://note.com/satsuki_60/n/n8fd312e85b22

#FundamentalAnalysis #StockSelection #iSPEED #RakutenSecurities #InvestmentBeginner #InvestingInYour60s #RetirementAnxiety #StartedWithAI #WorkingTogetherWithHaru