How I Research Any Stock Before Investing

Summary

The presenter outlines a fundamentals-focused checklist for researching individual stocks. He describes himself as a long-term buy-and-hold investor who invests in individual stocks alongside ETFs and other assets. He cautions that individual stocks involve greater risk and concentration, and that this approach is not suitable for everyone.

He uses Seeking Alpha as his primary research platform for U.S. companies, while noting that its coverage of international companies is weaker. His process combines financial metrics, historical performance, analyst views, and AI-assisted follow-up research.

Research Checklist

• Review share-price history: Check year-to-date performance, then zoom out to five- and ten-year periods. Look for a longer-term uptrend rather than relying on a recent surge.
• Assess business fundamentals: Check whether revenue and earnings are growing, whether the company is profitable, and whether it has a durable competitive advantage, or “moat.”
• Consider management and long-term prospects: Evaluate management quality and whether the company is investing in future technology and adapting to changes such as AI.
• Check ratings and financial factor grades: Compare Seeking Alpha analyst ratings, Wall Street analyst ratings, and its quantitative (“Quant”) rating. Review grades for valuation, growth, and profitability.
• Review company size and valuation: Use market capitalization to gauge scale and forward P/E to assess valuation relative to earnings.
• Check short interest: Treat short interest above 10% as a potential warning sign, though it does not guarantee a share-price decline.
• Review the financial structure: Examine revenue and earnings growth, profitability, debt and capital structure, and dividends where relevant.
• Read both bullish and bearish arguments: Use opposing analyses to challenge the investment thesis. Consider individual analysts’ past rating records rather than accepting a rating at face value.
• Look at ownership and insider transactions: Consider institutional ownership and leadership continuity. The presenter cautions that insider selling may reflect compensation or liquidity needs rather than a lack of confidence.
• Benchmark against competitors: Compare the company with peers and examine where it is stronger or weaker.
• Compare long-term total returns with the market: The presenter’s default benchmark is the S&P 500. He prefers total returns, which include dividends, over price returns alone, and usually checks five- or ten-year periods.
• Use AI with context: After doing initial research, he may use tools such as Claude or ChatGPT to challenge his thesis. He recommends providing company information and personal analysis rather than asking a context-free question such as, “Is this stock a good buy?”

Examples and Figures Cited

Micron Technology (MU)

The presenter says Micron’s one-year gain was about 766%. He began investing around February or March and says he had more than doubled his money, though he did not capture the full rise.

He also cites the following:

• A 4.99 Quant rating and a forward P/E of about 17, compared with 88 for Palantir.
• Short interest of 3.3%, which he considers reasonable; short interest above 10% would concern him.
• A negligible dividend yield, meaning he would not buy Micron for dividend income.
• Sharply growing revenue and earnings outlook through 2027, without specific forecast figures.
• One analyst’s “sell” calls preceding further gains of 173% and then 62%. He uses this to illustrate why analyst records and counterarguments matter, not to dismiss bearish views outright.
• Seeking Alpha’s inclusion of Micron among its top 10 stocks for 2026, after which he conducted his own due diligence.

He reports five-figure gains on the position and explicitly says this is not a recommendation.

Other Examples

• Market capitalizations: The presenter describes Nvidia as just under $5 trillion, SpaceX as $2.5 trillion and sixth-largest, and Micron as $1.1 trillion. These are figures presented in the video.
• ASML: Cited as an example of a company with a strong moat because, according to the presenter, it is the only company producing machines that make semiconductor chips.
• Portfolio and benchmarks: He says his publicly shared eToro portfolio had outperformed the S&P 500 and Nasdaq 100 since he began sharing it, without providing exact dates or return figures. He stresses that past performance does not guarantee future results.
• Alpha Picks: The presenter says he follows Seeking Alpha’s stock-picking service and was more than $1,000 in gains from its recommendations at the time of recording. He also says his Micron gains followed a Seeking Alpha recommendation. These are his reported results and are not independently verified performance figures.

Portfolio Approach, Risks, and Disclosures

The presenter says his portfolio includes real estate, cryptocurrency, ETFs, peer-to-peer (P2P) loans, and individual stocks. He is comfortable taking risk with only part of his capital and advises viewers who prefer ETFs to stick with them rather than copy his more concentrated stock approach.

He says he does not base decisions primarily on technical analysis, momentum, or market sentiment. He prefers a strong fundamental track record and generally considers turnaround stories riskier and not his preference. He believes research-driven conviction can help him remain invested through a 20–40% correction and says he might add capital if he still believes in the company’s fundamentals. This is his personal approach, not a universal strategy.

Subscription Promotion

The video promotes Seeking Alpha subscriptions, including Premium, Pro, and Alpha Picks. The presenter quotes a $545 first-year bundle price, claiming savings of more than $253, and says the offer runs through July 7. He also says links would provide the lowest available price afterward. Some features require paid plans.

Disclaimers

The presenter says the content is not financial advice and that viewers should do their own research. He warns that capital is at risk, past performance does not guarantee future results, and he does not encourage viewers to adopt his individual-stock strategy.

Presenters and Sources

• Kai, host of Smart Money with Kai
• Seeking Alpha ratings, research, Quant scores, financial data, and Alpha Picks
• Wall Street analysts
• Research tools discussed, including broker apps, Yahoo Finance, TipRanks, Simply Wall St, Investing.com, Claude, and ChatGPT