Investing in the stock market is inherently risky. An investor can lose all of their investment if the value of the stock (or portfolio of stocks) goes to zero. On the other hand, an upside could be very large (theoretically - unlimited). Taking the risk could prove to be disastrous or spectacularly successful, or anything in between.
So, how can you improve your chances of success? There are a number of recommendations to that effect:
Investor’s Craft offers you tools for selecting stocks. These tools use sophisticated valuation algorithms that interpret historical financial statements of publicly traded companies. It is a purely “mechanical” process with no human intervention in it.
There is a big disadvantage to it: even the best computer is not as smart as an average financial analyst. On the other hand, there is a huge advantage to this process: it is objective. All stocks are evaluated by the same algorithm on exactly the same bases. This makes possible direct comparisons among many different companies.
Please keep in mind, though, that stock valuation results generated by valuation algorithms presented on this site are just rough estimates based on the company past financial statements. What is of the paramount importance is the company future performance. Nobody knows what it will be. We could only make educational guesses about it.
So, take with a great deal of healthy skepticism recommendations assigned to individual stocks on this site (“sell”, “hold”, “buy”). They are the result of purely “mechanical “ algorithmic valuation intended for a rough classification of the valuation results. They are not actual recommendations to buy or sell specific stocks. In fact, we do not offer stock-specific or market recommendations. We just offer tools for stock analysis. In our opinion, these tools are best used for preliminary stock screening, as they offer a very fast way to narrow down the number of stocks that might be of interest to an investor from several thousand to several dozen.