At Fragasso Financial Advisors we feel privileged to work with clients with a wide range of backgrounds and professional expertise in many fields. Our clients sometimes ask us to look into investment ideas they come across based on their direct experiences.
Many ideas may come from such inquiries and we are happy to do the research. We have made significant investments in research resources. We have tools available to analyze your ideas for their investment merits, as well as the proper fit within your overall financial picture.
The concept of investing in what you know has been popularized by legendary investors such as Peter Lynch and Warren Buffett. Investing in companies you understand well is a primary ingredient for investment success. However, it is not the only ingredient.
No investment should be made in a vacuum. You must have a well rounded understanding of how an investment may fit within the overall picture of your finances and within the proper context of your goals. Whether a stock is a Buy, Sell or Hold very much depends on your own individual circumstances.
As part of our services, we offer an evaluation of stocks you may hold or have an interest in. We perform the analysis by using the same rigorous criteria we employ in managing stock portfolios for our individuals and institutional clients.
Step 1- Valuation screen – establishes price targets and potential returns for all stocks within each sector. Price targets are computed through a combination of free cash flow discount models and price multiples.
Step 2 – Fundamental Analysis Screen – seeks to avoid investing in stocks that are cheap because their fundamentals are deteriorating. The fundamental screens rank all companies within each sector by a weighted score of fundamental ratios to determine the relative quality of each stock.
Step 3 – Thorough Analytic Review – develop stock investment theme including, understanding of performance drivers and possible catalysts as they may apply to each industry.
Step 4 – Thesis challenge – to reduce the risk of one sided opinions, we seek out negative reports that may overturn a positive thesis.
Source: Morningstar Direct
We perform weekly valuation and fundamental screens for all individual stocks in our investment universe. Once an investment has been made, we monitor market stock prices versus the target price of every position, on a daily basis. If you would like us to analyze stock positions you own or simply want to know more about our process, please contact your financial advisor or complete this form and someone will contact you.
Investment Advice offered through Fragasso Financial Advisors, a registered investment advisor. Sample screens do not represent investment recommendations and are for illustration purposes only. No allocation or investment strategy protects against loss. Investing involves risk and loss of principal may occur. Past performance is no guarantee of future results. Information has been obtained from sources believed to be accurate and reliable.
Andrei Voicu is Managing Director and Chief Investment Officer at Fragasso Financial Advisors, a Pittsburgh-based investment and financial planning firm. Due to industry regulations, comments are not permitted on this blog. If you would like to contact the author, please email us at firstname.lastname@example.org. Andrei can also be reached for comment at 412-227-3200.