Frequently Asked Questions

General Questions
How exactly do you find the stocks you end up buying? What exactly makes you buy them?

Q: I got to thinking today about how successful I have been thus far by following your PPR e-mails. My question pertains to how you exactly find these stocks. How exactly do you screen for those? Is there any particular search criteria?

I'm the type that eventually, I'd want to be able to find these stocks myself. I guess a more appropriate question to you is how you started finding these stocks yourself? I'm still a novice as it is, but when you send out a PPR e-mail, I want to know what quantitative factors went into that and also HOW you exactly found it.


A: We have screens we run throughout the day to keep our watch list fresh. Every stock on our watch list contains price alerts so we know when a stock hits a price point which may cause us to buy, pyramid, sell, or short it. We discuss this in our book and the FAQs here on the site. We use fundamental and technical considerations when screening thousands of stocks down to just a handful which get added to our watch list.

There is no precise answer as to exactly how we decide to buy a stock because much of it is based on experience and on each of our portfolio compositions at a given time. For example, we use systematic rules which we discuss in our FAQs on this site and in our book.  Some of the rules are discussed in O'Neil's book. This at least enables one to focus on the best stocks out there.

In terms of when to buy, how much to buy, and when to pyramid or sell or short, that is based on experience and also on our own trading personalities. Thus, the composition of my portfolio may be quite different Gil's portfolio at any given time, simply because we bring different trading personalities to the same set of leading stocks. This naturally affects each of our decisions to buy, pyramid, sell, or short.

Published: Apr 22 2011