• Saahil Menon

A 3-Minute Review: Simply Wall St.


Back to problem one.


As we mentioned in this article, there are two main issues in the investing world:


  1. Lack of information

  2. Once we get it, we don’t know what to do with it!


Stock picking is an especially prevalent issue under #1. There are over 630,000 publicly-listed companies in over 300 industries – how do we even begin to find a stock that’s not called Apple, Tesla, Google, Netflix, or NIO?


We’re at a disadvantage.


That’s where screeners come in: I.e. a way for you to filter through those hundreds of thousands of companies and arrive at the ones you’re really looking for.


I’ve been using this particular screener for a short while and it's helped me find some incredible stocks that I'll mention later below.


Let’s take a look at Simply Wall Street.


One-minute Walk-Through


The biggest selling points here?


Flexibility


Especially with the “snowflake” model on the far right, screening stocks becomes far easier because we can tailor our choices to exactly what we’re looking for.


If it’s future potential (like Electric Vehicles, biotechnology, fintech) we want, we’re able to stretch that particular meter all the way, leaving the less attractive stuff – dividends, value – just as they are.


Stocks I was able to find like this:


  • Silicon Valley Bank (SIVB): found at $187 per share, now $540.

  • Neste Oyj (NESTE): found at €30.3 per share, now €58.

  • Pinduodo: found at $66 per share, now almost $200.


In other words, it’s an incredible way to find such under-the-radar companies that have the potential to explode later on.


Same process if you’re looking for good value or great past performance specifically – simply move the meter to characteristics you want to prioritize and you’ll get a number of great stocks to choose from.


And yes, I’ve tried it 😖.


Visuals


Once you’ve found a company from the screener, one of the best parts about SWS is that they’ve eased the way you can review financial information.


Graphs, colors, forecasts – everything is done so that even if you can’t understand the technical terms (ROE, profit margin, etc. etc.), you’re still able to make a good judgment on what the state of this stock is.


I.e. in the example above, even if I’m clueless on what earnings forecasts are (0:07), I can clearly tell by the graph that Pinterest’s future potential looks good.


The final factor?


Insider Trading


This is what made me decide to properly invest in Simply Wall Street.


Insider buying/selling is a metric that’s relatively harder to come by, because you need to scour through a bunch of SEC filings in order to see who’s been going into or pulling out of a particular stock.


Very few people want to do that.


Simply Wall St. takes the grunt work out of it because they're the ones that delve into those bureaucratic forms and then summarize all you need to know – as shown in the “Recent Insider Transactions” section above (0:48).


So, even if a company’s future prospects look amazing and profitability is pertinent, but you see there’s a high level of insider selling, you’ll be able to know something’s not 100% right.


In other words, it’s an extra layer of analysis that – I think – massively improves the way we can look at stock picking.


The Downside?


Simply Wall Street allows you to look at 5 companies per month for free, but if you’re like me and enjoy the process of finding new stocks to invest in, you might need a bit more than that to satisfy yourself.


That’s where the paid (premium) plan comes in.


I can understand that the payment part is annoying. Instead, think of it this way:


  • You’ll likely make the $120 (per year) cost back in one or two good investments.

  • This is an investment into building your knowledge and expanding your ability to find great stocks.

  • It’s cheaper than Netflix!


Check out the free version and let me know if you think it’s worth it - I’ll see you next week 👋

***This is a completely unsponsored article. Simply Wall St. doesn’t have an affiliate program yet so there’s no possibility of commission at all here. Just a great product that I wanted to share.