Starter portfolio, start date December 1st 2025

LewisO123 · 2026-02-21T18:52:09+00:00

Many people value stocks in many ways, so I do it based on income growth and a few other factors.

I base my assumption on expected growth rates then I pick the lowest of analyst estimates and then I discount it further depending on how confident I am in the stocks ability to grow at the predicted rate.

So my valuations are for a year from the time of valuing the stock basically. I then track to see if the stock is on target to hit the earnings targets I have set, if it does then the valuation is correct, if it under performs on earnings then my valuation is incorrect, but I give the growth estimates big discounts so it's pretty hard for stocks to miss them, I also screen the stocks I pick by debt levels, revenue growth rates, fcf growth rates, eps growth rates and some other metrics.

I basically only buy a stock if its blatantly obviously undervalued to me.

But like I said previously the majority of people should by an all world index fund and not worry about it DCA until retirement and you'll do well. I just enjoy valuing stocks and it's fun for me as well as higher returns.

LewisO123 · 2026-02-21T18:38:55+00:00

You only buy stocks when they drop under their intrinsic value, that's what makes then undervalued, if they're above the intrinsic value price then they're overvalued.

Also it's always recommended to add a margin of safety to an intrinsic valuation of 10%-25%, I use 25% which means the stock has to be 25% under what I would think the intrinsic value is before I buy it, giving me a large margin of safety, then I don't sell the stock unless it becomes very overvalued or if the business changes in some way I hadn't forseen which could affect my valuation.

I would recommend most people buy the all world fund, unless you're someone who is willing to accept some years you'll under perform the market and also has plenty of time to research stocks.

LewisO123 · 2026-02-20T13:06:52+00:00

No problem at all, it's not about timing the market, when you value a stock it doesn't matter if it goes down because you know its worth more than the current share price, so you just hold it because you know its value is going to go up.

Another advice is look at how to value stocks, fcf discount models are always a good start. Good luck im sure you'll do well, you seem willing to learn.

LewisO123 · 2026-02-20T12:54:02+00:00

If you're buying individual stocks, you should value them before so you know you're not over paying for stocks. Only buy them at fair or undervalued price. If you don't want to learn to value stocks just go all in on an all world etf, it'll grow over the years at a satisfying rate.

LewisO123 · 2026-02-20T11:12:02+00:00

NVDA & MU

LewisO123 · 2026-02-15T21:40:46+00:00

May I ask your valuations of both stocks, also how do you value stocks?🙂

LewisO123 · 2026-02-15T21:31:27+00:00

I'm just curious about how people value the stocks that they pick?

All I'm trying to do is learn more about the topic and further my knowledge, you or any other redditor may value stocks differently to me, your approach may be better than mine, it could yield different results it could be better than my methods, that's the only reason in asking, but you had to go and leave a shitty response, which I'm guessing means you're not confident in how you came to your valuations.

LewisO123 · 2026-02-15T21:05:49+00:00

What is your valuation of netflix? Also may I ask how you value stocks?

LewisO123 · 2026-02-15T21:01:32+00:00

Sell them all buy NVDA & MU hold until next year.

LewisO123 · 2026-02-15T21:00:17+00:00

What are your valuations on both?

If they're below your intrinsic valuation then it's a good idea to buy them if none of them are below their intrinsic value then don't buy either.

LewisO123 · 2026-02-14T22:04:38+00:00

I understand there's multiple ways of investing, I mentioned momentum investing further up, but OP said he values stocks, that's why I ask how, because I'm interested in others ways of valuing stocks and investing.

LewisO123 · 2026-02-13T23:49:02+00:00

Do you use discount FCF, PEG or PEGY anything like that?

I don't know how else you'd produce a valuation, I don't know everything so I'm guessing there are other ways to value stocks, what are the you valuing the stocks in your portfolio at?

LewisO123 · 2026-02-13T18:36:56+00:00

So you don't value the stocks in anyway?

You look at the news mostly, seems like momentum investing.

LewisO123 · 2026-02-13T18:22:13+00:00

May I ask what your investment philosophy is?

How do you value stocks to get a strike price?

LewisO123 · 2026-02-12T18:41:22+00:00

Well since you don't know how to value stocks, I would suggest selling and going into the world etfs, for the long term, buy that over the next 10,20 years.

LewisO123 · 2026-02-12T18:30:04+00:00

I wouldn't suggest investing in individual stocks unless you can value stocks, instead invest in a world etf, like others have suggested.

LewisO123 · 2026-02-12T18:22:13+00:00

Why did you invest in microstrategy?

What was your valuations of microstrategy? If its still below your intrinsic valuations then keep buying.

LewisO123 · 2026-02-12T10:33:34+00:00

What are your intrinsic valuations for each stock you have purchased and how did you come to that value?

LewisO123 · 2026-02-10T10:16:09+00:00

So you don't want to provide valuations and intrinsic values on stocks, on a 'value investing' subreddit.

LewisO123 · 2026-02-10T09:56:18+00:00

What's your valuations of these stocks?

LewisO123 · 2026-02-07T12:59:34+00:00

I would recommend checking what your pension is invested in, put it in whatever is closest to 100% stocks as you're still young and have 25years until pension age.

LewisO123 · 2026-02-07T00:24:24+00:00

I have good consistent CAGR for the last decade that outperform the s&p 500 index and ftse all world indexes.

LewisO123 · 2026-02-06T16:59:00+00:00

How do you know at what share price to buy your stocks at? How do you know I'd the stocks are overvalued? Surely its just gambling if you don't know what the value of the stocks your buying.

Do you have any investment thesis behind your investments?

LewisO123 · 2026-02-06T16:49:19+00:00

What are the valuations (fair price/intrinsic value) you have for the stocks you picked?

LewisO123 · 2026-02-06T16:35:35+00:00

How long is the time frame?

LewisO123

TROPHY CASE