Why I Built UltimateStockPicker.com

The beginning

When I first got started in investing, I asked myself the basics:

Do I invest in stocks or real estate?
If I invest in stocks, which stocks do I buy?

I figured I should start with the richest investor of all time: Warren Buffett. It turns out he writes and speaks a lot about how he invests. He recommends many books, such as The Intelligent Investor, The Interpretation of Financial Statements, and Securities Analysis. The most successful investor in history used these books as his manuals, so I studied them too.

Investment manuals

These books have many valuable ideas and formulas showing how anyone can take a logical and profitable approach to investing in any market.

However, these manuals all have the same underlying assumptions:

You invest as a full-time job
You have broad access to the financial performance of most or all public companies

Neither of these were true for me. I'm guessing neither are true for you either!

Limited time and information

I had no idea how different companies stacked up against each other in terms of earnings, and looking into it was a slow and manual process.

I also had many other things to do besides invest.

So I built ultimatestockpicker.com

In the summer of 2020, stuck at home, I suddenly had a lot more free time. I began researching how to compare the financial data of *all* public companies in America. I soon realized I would have to build my own end-to-end data analysis platform. In the years that followed, I gradually assembled a database of financial figures. I built a data pipeline feeding thousands of financial reports into it every day. I created algorithms to double-check every number. Eventually, the stock picks began to come out of this system.

What I found was sensational

I found shockingly undervalued companies that posted reliable profits and paid out hefty dividends. Some of these were on the S&P500 already, but many weren't. Most were companies in unromantic but vital industries like resource extraction, specialized REITs, oil pipelines, savings institutions, transport, and insurance. These industries can be incredibly profitable. They tend to be unknown, or just not very cool or exciting. There's nothing wrong with their dividend checks though!

What is an ideal investment?

In my mind, the ideal investment is a business that is really great at making money for its owners that is also undervalued. That way, I can buy a lot of it! There are many companies that are really great at making money, but because everybody knows this, everybody invests in them, and their stock prices are high. Think Apple, Tesla, and Microsoft.

Then there are other companies that are also great at making money, but are completely unknown. Perhaps these companies don't spend money on publicity; perhaps they are on the smaller side; perhaps they're simply in not-so-glamorous industries. Though these companies may post bumper profits every year and regularly send their investors big dividend checks, most investors simply don't know to look them up. Thus they are undervalued... and ripe for the picking by an astute investor. These are solid businesses with long track records of good profits. And because they are undervalued, you're risking less of your capital to buy a stake.

How to find ideal investments

Enter ultimatestockpicker.com. My idea for this platform was to create a system that reads every financial statement for me, extracts the critical information, monitors stock prices, and then shows you a list of the current best stocks. I wanted to automate Warren Buffett's formula as far as possible. I can't automate human judgement. But I can give you an up-to-the-minute list of companies that make a ton of money and is currently on sale.

What ultimatestockpicker.com isn't

ultimatestockpicker.com provides detailed information about every company on the market, and highlights the best companies to come out of specific filters. It won't optimize your whole portfolio. It cannot provide investment advice.

How you can benefit

Happy investing!

Fred