Best Stocks to Invest in 2013, No Matter What Your Investment Style
2013 gives us as clean a slate as we can possibly find for new investments. Many investors have decided to get out of the market in 2012 while many others who stayed have chosen to take profits or sell off dividend stocks in anticipation of higher taxes in 2013. As a result, going into December 2012, we can find a large number of stocks available at attractive discounts. Enterprising investors, of course, will take advantage of this glut of great values.
As we did last year, we will be ending 2012 at Value Stock Guide with a variety of screens designed to unearth the best stocks to invest in 2013. We are however, casting a wider net. Solid gems are hiding and we need to sift through thousands of stocks to find those few that will deliver outstanding returns in 2013.
I am a firm believer that “Value” cannot be defined by a few financial indicators. After all, what is growth, but an expectation of future value. If this future value can be pinned down as tangible and likely to happen with a great degree of confidence, then a growth stock is also a value stock. Besides, what may seem like an obvious value may be a great wealth destroyer in disguise. To wit HPQ.
So yes, one needs to look at the story. But before we do that, we need to short list the stocks we want to research further. Hence, these screens. Most of these screens, if not all, contain a downloadable spreadsheet that you can have for free that has much more data that you can use for your own analysis.
Best Stocks to Invest in 2013 by Asset Classes
1. Best Dividend Stocks to Invest in
- Best dividend stocks with history of dividend growth – 62 stocks with downloadable Excel file
- More dividend stocks screens and ideas
2. Best Stocks to Invest in – Small Caps
- Best small cap stocks for value and earnings growth – 27 stocks with downloadable Excel file
- 5 Cheap Stocks With Book Value Growth
- More small cap stocks screens and ideas
3. Best Stocks to Invest in – Mid Caps
4. Best Stocks to Invest in – Large Caps
These lists are just the start
These screens are only the first step. Next step is to review each stock in these screens manually to see if they fit your criteria for investment. If they do, you may want to add them to your watch list. Expect to cut 80% of the stocks during this process. The third step would be to go through the annual statements and other financials and plug these in your model to see if they merit an investment. Run numbers and several what if scenarios. Expect to cut another 80-90% in this step. At the end, you will be left with 3 or 4 stocks for every 100 that may be worthy of investing in. At least that is how I approach my investing for myself and for my members. Discriminate heavily and mercilessly eliminate the ones that give you a slightest doubt. The goal is to get to a point where you have a very good idea of what the CEO of the company may be thinking, and what he is thinking will create value for you. If unsure about how to do this, read my article on how to buy stocks for further guidance