So I completed reading the "Security Analysis 6th Edition" in immense depth [cover to cover including all footnotes & appendix references].
*That I read intelligent investor cover to cover goes without saying.
To confess I am a starter when it comes to investing and I largely operate alone (not a professional trader). Here's my strategy on exploiting market at a very high level.
Get leads on publicly traded corporations through various channels: a. WSJ, b. CNBC, c. Online Forums
Scrutinize 10K, 10Q forms and S&P Report
- Ascertain satisfactory exhibit of income and balance sheet. Ascertain satisfactory capitalization structure. (credit ratings liabilities etc...) Ascertain investability of the security i.e. Undervaluation & low P/E
- Estimate cash flow & market prospects. (Questions remain here)
- If showing is well, then submit the security to internet criticism. (Online forums, perhaps make connections with fellow investors).
- If ALL is good, then invest.
How does the above steps sound? Remember I am an individual investor who operate alone. I do not have great resources to work on accurately estimating cash flows or make through market analysis or predict economic prospects.
Are there better guide/books on understanding 10K/10Q statements? Is there any such similar SEC filings that will help me analyze the opportunities?
Note:Despite my great enhancement in understanding security analysis due to Mr. Graham, I am aware that it requires one or two more reads to completely absorb the material in this work. So I am in no way getting overconfident.