I’m excited to announce a new free weekly newsletter where I’ll be sharing potentially undervalued stocks every Sunday.
Why am I starting this?
Back in 2022, I invested in a stock screener but honestly, it sat unused for nearly 2 years. Like many tools we buy with good intentions, it gathers digital dust.
But earlier this year, I finally decided to put it to work.
The results surprised me.
Using the screener to identify potentially undervalued stocks, I made my first investment in early 2024.
In October 2024, I took profit, which I’ll share the results later in this post.
I also reinvested in a new set of stocks identified through the screener.
As of 1 December 2024, these new positions are showing promising results with a 40% unrealised gain. (I’ll share more details about these trades in an upcoming post.)
Recently, I released a free investing course for beginners, covering the fundamentals of getting started in the stock market.
However, there was one piece missing – how to identify stocks for potential investment.
That’s where this newsletter comes in.
Every week, I’ll share stocks that my screener flags as potentially undervalued.
My goal is to provide beginners (and everyone, tbh) with a starting point for your own investment research journey.
Here’s some proof of the recommendations I got from the stock screener
For context, I bought these stocks on 25 January 2024, and they were all labelled as “On Sale” – which means that it’s basically undervalued.
I then sold these stocks when the screener said that it was “Watch” or “Overpriced” – mostly on 8 October 2024.
Let’s first start with a benchmark – the S&P 500 in 2024.
As you can see, the S&P 500 was priced at $4,894.16 on 25 January 2024 (sorry, you’ll have to zoom in).
And on 8 October 2024 – the date that I sold them, the S&P 500 was at $5,751.13.
So that means the market performed 17.51% in this period – a benchmark I often use to see how well my stock picks perform.
Okay, let’s start with some common stocks we’re all familiar with:
Meta
From $393.18 to $592.89 on 8 October 2024 = 50.79%
Paypal
$60.71 to $81.16 = 33.68%
Apple
From $194.17 to $225.77 = 16.27%
Amazon
$157.75 to $182.72 = 15.83%
$153.64 to $165.70 = 7.85%
There are also some stocks I’ve never heard of before and wouldn’t have bought at all:
Fortinet
$65.55 to $77.78 = 18.65%
Houlihan Lokey
$122.36 to $163.85 = 33.91%
They all had the same weight in my portfolio, so the average return from everything is 25.14% – higher than the 17.51% benchmark from the S&P 500 during the same timeframe.
Of course, if I had decided to hold the stock longer, I would’ve seen much higher returns as you would’ve seen in the images.
But hey, these are based on its valuation – if the screener says it’s time to sell, it’s time to sell.
That’s unless you’re willing to take the risk and ride out the growth, which is up to you as well.
What you’ll get every Sunday
Each Sunday, you’ll receive an email featuring:
- A curated list of 3-5 stocks that my screener has identified as undervalued
- For each stock, you’ll see key metrics based on value investing principles:
- Margin of Safety (MOS)
- The 4Ms of Rule #1 Investing (Meaning, Moat, Management, Margin of Safety)
- An overall score that combines these factors
These metrics are generated automatically by my stock screener – they’re meant to be a starting point for your own research, not investment recommendations.
Want to understand the calculations better?
I’ve created a detailed guide explaining the scoring methodology, including:
- How the Margin of Safety is calculated
- What each of the 4Ms means and how they’re scored
- How the overall score is determined
👉 Read the full methodology here
By providing this data consistently every week, my goal is to help you develop a systematic approach to identifying potential investment opportunities for further research.
Why am I offering this for free?
I believe that finding potentially undervalued stocks shouldn’t be locked behind expensive paywalls.
While I invested in a stock screener that has worked well for my own investing journey, I know not everyone wants to make that initial investment without first seeing its value.
This newsletter is an extension of my mission to improve financial literacy in Singapore.
Every Sunday, I’ll share the list of stocks that my screener flags as potentially undervalued.
You can then use this list as a starting point to conduct your own research and analysis.
Think of it as having a friend who points out interesting stocks they’ve noticed – you still need to do your own homework, but at least you know where to start looking.
For now, this newsletter is completely free. If you find value in it, I’d be grateful if you could:
- Join our growing community of investors
- Share it with friends who might benefit from having a weekly watchlist of potentially undervalued stocks
- Follow my journey as I continue learning and sharing about investing
Your support through sharing helps me reach more people who could benefit from this resource, and that’s the best form of appreciation I could ask for.
📢 Important disclaimers – please read
Before subscribing to this newsletter, please understand that:
Educational content only
- This newsletter simply shares stocks identified by my stock screener
- All metrics and scores are automatically generated
- This is for educational and informational purposes only
Not financial advice
- The stocks shared are NOT buy or sell recommendations
- I am NOT a licensed financial advisor or financial professional
- I do not provide personalised investment advice
- The newsletter content should not be treated as financial advice
Yes, I know the MAS is looking to regulate finfluencers – even though I don’t consider myself or Dollar Bureau a finfluencer – I’m afraid that’s not how MAS will see it.
So, word of caution, this is really not finance advice.
Your responsibility
- You must conduct your own thorough research before investing
- Always consult with licensed financial advisors to understand if any investment aligns with your:
- Financial goals
- Risk tolerance
- Overall financial situation
- Investment decisions should be based on your own analysis and judgment
- Understand that value investing is a long-term strategy
If you’re looking for someone licensed, I partner with financial advisors who can help you with your investments – all for free.
But that’s not the point of this post.
Important risk warnings
- Stock investing involves substantial risk
- Past performance is not indicative of future results
- Stock screener metrics may not accurately predict stock performance
- Market conditions can change rapidly
- You may lose some or all of your investment
I think it’s also essential that I point out some losses from the screener’s recommendations.
I didn’t buy any of these stocks despite them being undervalued because I didn’t believe they’d do well long-term.
Firstly, Airbnb.
On 25th January 2024, it was considered undervalued at $142.11.
I was an avid Airbnb user and started to dislike Airbnb due to the absurd cleaning rules that the property owners implemented.
Not only did I have to clean the rooms before I checked out, I also had to pay excessive cleaning fees.
And if I didn’t clean, the owner can impose a fine too!
Why am I paying these cleaning fees when I have to clean the rooms myself?
Making things worst, hotels were around the same price too, without the ridiculous cleaning fees and rules.
If I had this problem, so did others, and true enough, many had the same experience.
From this, I knew Airbnb wasn’t for me.
If I calculated the returns from this investment, I would’ve made a loss of -6.67% on 8 October 2024.
Next up, Adobe.
On 25 January 2024, Adobe was considered undervalued at $622.58.
Canva Premium charges only $9/month compared to Adobe’s $38.84/month.
Not forgetting that Canva’s free version is extremely robust and solves most design needs consumers and businesss have – so it’s pretty obvious that most of the market will gravitate towards Canva.
I’m in the marketing industry, so I see many of my friends personally using Canva, and the companies they worked for using Canva too.
Heck, I use Canva Premium for Dollar Bureau!
And Canva has been developing really quickly, making key acquisitions that place it in direct competition against Adobe.
Not forgetting that there’s Figma, Final Cut Pro, and other cheaper alternatives that meet the same customer needs in other products offered by Adobe.
Based on this, I didn’t think Adobe as an investment would work, and I was right.
If I were to have sold it 8 October 2024, I would’ve made a -20.29% loss.
And if I were to have invested in both Adobe and Airbnb, my average return would’ve been 16.67% – lesser than the S&P 500.
As you can see, the stocks I share here may tell you that something is undervalued – but you need to still research them yourself and understand whether it’s a good company to invest in.
Making the wrong decisions would lose you money – or in my case, make me less than just investing in the S&P 500 – while making the right decisions would make you more while saving significant amounts of time.
That’s why the stock screener is just the first step of your investment journey
While it identifies potentially undervalued stocks based on metrics, your personal insight and research are what make the difference between a good and bad investment.
In my case, understanding Airbnb’s customer experience issues and Adobe’s competitive challenges helped me avoid potential losses.
The screener identified them as undervalued, but my industry knowledge and personal experience told a different story.
This is exactly why I’m sharing these stock ideas with you.
By combining the screener’s systematic approach with your own knowledge and research, you can make more informed investment decisions.
While I avoided losses on Airbnb and Adobe, the same screener helped me identify other opportunities that have yielded positive returns.
Remember: The goal isn’t just to find undervalued stocks – it’s to find good companies at great prices.
Ready to get started?
If you want these weekly stock ideas, simply subscribe to my newsletter!
After subscribing, you’ll receive a welcome email, and your first stock list will arrive this Sunday.
You can unsubscribe anytime.
