According to a report in the Washington Post from 2018, less than 50% of Americans don’t have any ownership of publicly listed stocks. Most Americans who have exposure to stocks will do so through mutual funds or index funds, more often than not through 401(k) or Roth IRA accounts.
Only 14% of Americans hold direct ownership in publicly traded stocks. Let that sink in.
Now, in itself, this should not be too surprising. Most people simply are not interested in investing or finance. Saving and investing is a means to an end and not a process that piques their interest.
If you do belong to the minority of people interested in business and wealth creation, chances are that you are actively managing your residual income and accumulated net worth.
But therein lies the catch 22. Most people who are interested in wealth creation are to busy creating wealth, to manage their wealth.
Active Investing and Stock Pickers
If you are a business owner or building a career in corporate management, chances are that you will have little time left over to actively invest in the stock market. You will, therefore, be left with either following passive investment strategies or outsourcing decision making to a financial advisor or an investment manager.
The demise of the stock picker is something that we feel is a shame. Many people have a deep understanding of the industries that they are active in during 9 to 5 (and in most cases after that and a little bit during weekends). They just don’t have the time to research individual securities.
Fundamental Analysis
We belong to the ilk of those who practise the principles of Fundamental Research and Security Analysis. In fundamental research, the analyst aims to value the underlying securities of a company, based on the fundamentals of the operating business.
Ben Graham, the father of Security Analysis, said that in the short term, the market was a voting machine but in the long term, the market was a weighing machine. At Rouey Research, we are in the weighing business.
Equity Analysis Reports
At Rouey Research you will neither find an investment manager nor a financial advisor. We offer affordable custom Stock Research Reports to individuals and companies. In most cases, clients come to us with research assignments on companies they are familiar with, through their businesses or careers. But as they do not have the time to perform the analysis required for investment decisions, they outsource the research to us.
Initiation Equity Research Reports for $99
Rouey Research offers Initiation Equity Research Reports for $99. This is standardised fundamental research of a publicly-traded stock, based on the most recent financial filings of the company. The research report will provide a calculation of profitability metrics such as Return on Net Operating Assets (RNOA) and Return on Incremental Invested Capital (RIIC).
In essence, you will receive a valuation report based on fundamentals, just as if you were trying to determine the value of a private company.
To order an Initiation Report, contact us.
How to Value Stuff 