What's up guys and welcome back to wall street millennial on this channel, we cover everything related to stocks and investing with the rise of the internet and social media. Individual investors have never had greater access to financial information. There are almost 8 000 stocks listed on the major u.s exchanges. Building a portfolio of 10 to 15 stocks is a daunting task.

How can you possibly hope to pick the 10 best stocks out of such a large pool in this video, we'll go over the top four internet tools that we use to sift through the market and try to identify only the most undervalued stocks? The first method we use is screening stocks based on their fundamentals with finn biz. The second is looking at the positions of top performing hedge funds, and the third is another online platform called value investors club, which contains research reports by both individual and institutional investors. All of these methods are completely free and we're not sponsored by any of them in this video we'll go through them one by one and show how you can use them to find undervalued stocks, we'll start off with the first entry on our list, which is screening Stocks with finites.com thinvis.com is a free website with tons of information about stocks. One of its most useful features is its stock screener.

Once you click on the screener tab, it will show a list of all the stocks on the major u.s exchanges. As you can see, there are over 8 000 total stocks in their database. There are dozens of different screeners that you can use they're broken down into three categories: descriptive, fundamental and technical. Descriptive includes things like what exchanges listed on market cap sector dividend yield and others fundamentals includes things like earnings, growth and price to earnings.

Ratios technical includes metrics such as moving averages. If you click the all button, you can see all the screener options. As you can see, there are more than 60 different options. Currently, no filters are chosen, so the list shows all the 8238 stocks in their database as we input requirements onto the screener we'll whittle down on this list.

As an example, let's say we were looking for high growth technology stocks listed in the u.s on the sector. Filter we choose technology from the drop down menu. This reduces the size of the list by more than 90 to 710, but we can do much more. We added a few more filters, including at least two billion dollar market cap forward price to earnings ratio under 20 sales, growth of at least 10 percent over the past five years.

Eps growth this year of at least 10 percent, and it must be based in the us adding these filters took the list from 8 000 down to just 14 stocks. This is a much more manageable number of stocks to look at and based on the filters we applied. We know that these stocks are all growing technology companies with reasonable valuations. Of course, the filter is not perfect, as it only considers accounting, metrics and ratios.

It doesn't take into consideration the company's competitive position or any accounting complexities which could throw off the ratios, but it gives us a good starting place. Now you have a list of stocks that fits your investing criteria. The next step is to perform due diligence on each stock by looking at their financial reports, researching their products and competitors etc, but now that you've narrowed it down to just 14 stocks, this is not such a monumental task. The next method on our list is tracking the positions of hedge funds.

Hedge funds invest millions of dollars in hiring investment professionals in proprietary data. They do extensive research to find undervalued stocks. Fortunately, for us all us-based hedge funds are required to disclose their positions to the sec every single quarter. We can thus look at all their filings to identify which stocks are popular among the hedge funds.

Some hedge funds, like citadel, have very short holding periods. There is a delay of a few weeks between the end of the quarter and when they have to file their positions. So by the time you can see their positions, they have often already exited them, but many hedge fund managers are long-term investors with multi-year time horizons. For example, bill ackman holds a concentrated position of half a dozen stocks which he thinks are undervalued.

Whalewisdom.Com is a free website which shows the holdings of hedge funds, as you can see here, akman currently owns seven stocks, including lowe's agilent technologies, chipotle mexican grill and others. If you believe in bill ackman's track record, you can use his holdings as your starting point and do your own research on each stock. Another long-term hedge fund you can follow is tiger global, a massive hedge fund that manages almost 80 billion dollars. They have a pretty long holding period as you can see.

They've held most of their top holdings for multiple years. Their top positions are chinese: e-commerce, company, jd, microsoft, the singaporean conglomerate, sca, roblox and docusign. These are just two examples. You can do your own research on top performing hedge funds to see which ones you want to follow in general, it's better to look at smaller hedge funds, as they can invest in small under the radar stocks that are mispriced when a fund is too big, they Lose their ability to buy overlooked gems, for example, warren buffett's berkshire hathaway has hundreds of billions of dollars to manage.

This restricts their investing domain to mega cap companies, while his holdings might be high quality they're already too big. So you don't have 10x potential. You can get with smaller stocks. Another place to look is actively managed.

Etf, such as arc invest. Etfs are required to disclose their positions every single day, so you can see when they make new positions or exit existing positions in real time arc. Invest is the largest actively managed etf by far. If you want to find disruptive innovation stocks and like kathy wood's track record, you can use her holdings as a starting place to do your own research on these stocks.

Our third and final method for finding undervalued stocks is the value investors club value investors. Club is a platform where investors post ideas for stock investment, both long and short, it's free to join and anyone can make an account if you want to post a write-up on the website. You have to submit a sample write-up to be reviewed by the moderators. Only if it's approved can you post it to the rest of the community.

They make it extremely difficult to get approval, so only top-notch investors can post. This keeps the quality of the content high. There's a 45-day delay from when the write-up is posted and when it can be viewed by the general members, the approved members get access immediately. Most of the ideas are long-term plays, so the 45-day delay isn't too big of a deal, but this is how they incentivize people to apply for approval.

Membership is capped at 250 and becoming an approved member is considered to be highly prestigious. The approved members include both individual investors and institutional investors, such as people who work at hedge funds. It was founded by hedge fund manager, joel greenblatt, as a way for intelligent investors to share value and special situations, ideas with each other. They have filters based on what type of socks you want to see.

You can sort by longer short ideas, market, cap and company location. We filtered to look for only long ideas in the us, with market caps between 1 billion and 10 billion. The investment write-ups are usually very long and detailed. Many of the authors are professional investors who research stocks for a living value investing club offers perhaps the highest quality write-ups you can get for free.

One thing to keep in mind is that joel greenblatt was a traditional value investor. In the same vein as warren buffett value investors club has maintained that ethos and most of the posts are for value oriented stocks. If you want to find speculative disruptive technology stocks, you probably won't find too many of them here. In 2012, three university professors publish a paper where they analyze the returns of value investors club recommendations between 2000 and 2011.

They found that buy recommendations on the website had abnormal returns of 1.31 per month and sell recommendations had abnormally low monthly returns of negative two point: six seven percent per month. These are pretty insane returns. If you just buy stocks recommended on the platform, you could potentially make returns of up to fifteen percent above the market. Of course, past performance does not guarantee future performance, and some of these returns will already have been realized within the 45-day exclusive window.

So it's important to do your own research, alright, guys that wraps it up for this video. I hope, after watching this video, you have a better idea of where to start, if you're building your own investment portfolio, but remember that these three platforms are just ways to screen for stocks that may be undervalued, there's no substitute for doing your own research. So you can be confident in your portfolio and hold on to your positions for the long term. What do you think about these stock screening methods? How do you find stocks to invest in? Let us know in the comments section below, if you enjoyed this content, make sure to hit the like button and subscribe.

So you don't miss future uploads as always. Thank you so much for watching and we'll see in the next one wall, street millennial signing out.