INVEST1000 is officially underway.

Lester got things started by sharing his thoughts on how he plans to invest his $1,000 fund.

After the intro was published, I received a few thoughts from people wondering whether technicals will work.

As it’s not my money, and I don’t plan to tell Lester what to do, we will have to see how it works.

The main goal is to provide the advice and coaching required to work through finding which stocks to invest in, how to interpret the basic stock info and properly allocate the funds.

In this first episode of INVEST1000, we go through all that.

Video Length: 00:40:52

Video Table of Contents

[00:39] General overview of the Action Score System
[01:23] How the Action Score works
[03:37] Core metrics we use in Old School Value
[07:31] Focus on higher grade stocks
[11:36] Focus on high Action Scores
[13:24] What is a Trifecta stock?
[14:20] B Grade stocks (Sleeper, Munger, and GARP stocks)
[17:11] C-D Grade stocks (Mom & Pop, Value Trap, Darlings)
[17:57] F Grade stocks (Red flag stocks)
[18:27] Additional reasons for red flag stocks
[20:28] Comparison of A Grade and B Grade companies (GME & FB)
[22:42] Controversial picks (GILD & NUS)
[25:24] Things to keep in mind when creating your shortlist
[32:12] General rules of thumb
[37:17] Rules for buying & Selling
[39:52] Lester’s mission for episode 2

Notes from the Coaching Call

I’ve laid out the info on the overall concept of how the Action Score works and how it is made. You will see the components that make up the Quality, Value and Growth score.

By revealing the metrics I use, the point is to understand the types of stocks it will bring up. This way, you’ll have confidence in the types of companies that show up on the list. The goal is to go after the stocks with high Action Scores.

Focus on the ones that are graded A or B. I reach down to the C’s sometimes, but not often.