Forget Screeners and Hot Tips: Here's How I Actually Research a Stock Using Fundamentals That Matter

Many investors will buy a stock simply because someone told them to, without understanding how a business works. Others will simply buy because it has a low valuation multiple, such as the price-to-earnings ratio (P/E). Both these strategies are a recipe for disappointing results. When looking for stocks to buy and hold for a decade or longer, there are fundamentals that matter much more than others. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.