If I want to restrict my search to my favorite industries I click on the

If i want to restrict my search to my favorite

This preview shows page 138 - 141 out of 263 pages.

works very well and has the added merit of being free. If I want to restrict my search to my favorite industries, I click on the Industry drop-down menu and select from about 200 industry groups. You remember how we were digging around in Chapter 3 to find an industry we liked? We start our search the same way here—with industries we found by doing the 3 Circles. I put my cursor in the Field Name box, click it, and get the first drop-down menu. I put my cursor on Company Basics, and the second menu appears, where I selected Industry Name. If you’re following along, click on Industry Name. Industry Name is now in the Field Name box. Click in the Operator box and select “=.”
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Now click in the Value box and you’ll get a list of Sectors. There are thirty-one Sectors at MSN. MSN has decided the nine Sectors we saw over at Yahoo! are too broad for classifying all the stocks, so they have thirty-one instead of nine. I scroll down the list to the first group that looks like it might have businesses in it that I’m good at according to my 3 Circles. My guess is the Consumer Non-Durables Sector has something for me. I slide down to it and see the Industry Group list appear to the right. The first industry is Textile–Apparel Clothing. I want to look in that industry to see if there are any good businesses, so I click on it and it loads into the Value box. You can only do one industry at a time, so this search will be about the stocks in the Textile–Apparel Clothing group. The beauty of doing it this way is I can swap any industry in for this one and then the rest of my search will be run on that new industry. You’ll see what I mean in a minute. First, I have to add some parameters, or facts about a company, that tell the computer what I’m looking for in a business. My first choice is a business with a solid Return on Invested Capital. I put my cursor in the Field Name box below my first search parameter, Industry Name, and select Investment Return. Now I can choose ROI for five years. (ROI is MSN’s abbreviation for ROIC.)
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I want companies with solid ROIC, so I limit the results to companies that have at least a 10 percent average for the last five years. What else should I ask for? How about Earnings growth? Again I’ll demand it be at least 10 percent for the last year. I’m not doing a range of years, because if a company got decent earnings in the last year, they’re doing really good. I can look at the range later. Add that search parameter by again putting your cursor in the Field Name box below the last search parameter you added and then dig around until you see EPS Growth. Now add Debt as a search parameter. We’ll use the debt-equity ratio to find companies with almost no debt. If you’re struggling with this searching stuff, head over to my website, PaybackTimeBook.com . I show you how to navigate these site pages step by step so you can follow along click by click. I’ve also created prebuilt searches for various industries that you can access. Try searching for a stock just once with this tool and you’ll know how to do it forever. It really is that easy.
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  • Spring '20
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