How to quickly scan a large # of stocks.

In my latest post - 4 step framework for finding contrarian ideas I had mentioned “FPI scan™️ ( < 10 mins)” in step 3 of the process.

Most of my dear readers wanted to learn more about what this FPI scan™️ scan is.

So, firstly here’s the context for WHY FPI scan™️ can be a game changer for you.

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A. I need to feel deeply motivated - Gut level “Greed” - to go all in on researching a business. Good ideas that were once a luxury, are now fairly abundant.

B. Combine this with the fact that I would rather have a big position (my definition of big = 10%+) in a relatively lower number of companies than have a 3-5% cap limit etc. Of course, this is subject to change.

C. The “conviction” to build larger positions come from “deep research”, which is time & energy expensive.

D. To be deeply motivated to do the “deep research” on a business, an idea needs to literally “show me the money”.

E. To “see the money”, I usually end up scanning a LOT of companies that get dumped in my “core checklists” from all sorts of sources - friends, scans, newspapers, dreams etc etc. This is a high volume, low depth approach.

This “scan” is what I’m cheekily referring to the “FPI scan™️”, which has been developed over the years. A lot of it is copied from other great investors, some of it is my own.

This format is given below is standard and is pasted in the notes section of www.screener.in.

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BMV - Business, Management, Valuation

<paste the text below in the notes section>

*You could also create a prompt for screener.ai using this format to get a good gist, although I prefer manual note taking because THAT’S the POINT OF NOTE TAKING - doing it manually so recall is high.

Business:

• Segment

• Leadership

• Growth

IS -

BS -

CF -

Management:

• shady? Compensation? RPT?

Valuation:

<paste the text above in the notes section>

IS* - Income statement.

BS* - Balance Sheet.

CF* - Cash Flow Statement.

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The gyaan is all good. Here’s how to really apply it.

# John Cockerill.

Now that you’re done watching the entire video, I look forward to hearing your views/questions in the comments section below.

Rahul Rao, CFA

DISCLAIMER:

Disclosure: The writer or his dependents MAY HOLD shares in the company/stock discussed in the article.

Note: We have relied on data from www.Screener.in, www.tijorifinance.com and company released documents throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

Rahul Rao has been Investing since 2014. He has helped conduct financial literacy programs for over 1,50,000 investors. He helped start a family office for a 50-year-old conglomerate and worked at an AIF, focusing on small and mid-cap opportunities. He evaluates stocks using an evidence-based, first-principles approach as opposed to comforting narratives.

Disclosure: The writer or his dependents MAY HOLD shares in the company/stock discussed in the article.

The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.