Why S Tier Stocks
I built this because my watchlist was a complete mess.
This is not some polished Wall Street origin story. I had a basic problem: there are way too many stocks, and I needed a better way to decide what deserved my attention.
So I made the thing I wished existed. A system that takes a giant stock universe and tries to rank it into the names worth studying first.
5,000+
US stocks. Very fun. Very not useful.
100-ish
Names that pass the first smell test.
20-30
A more realistic number of serious ideas.
S Tier
The stuff that should be looked at first.
Step 1
Start with the giant pile
There are 5,000+ stocks in the US. That's way too many. I'm not gonna pretend I can understand every random ticker.
Step 2
Find the companies that can actually move
I care about businesses that can beat the S&P 500. I don't care about ok businesses. Revenue growth and earnings growth are usually where the story starts. Hint: iPod, iPhone, Tesla.
Step 3
Cut it down
Roughly 100 stocks are growing and aren't in perpetual decline. That's still too many.
Step 4
Rank the final pile
This is where S Tier Stocks comes in. Rank the remaining stocks based on a set of criteria to determine the very best, S Tier ones.
The tiny thesis
Growth matters. Focus matters. Randomly owning everything is not the goal here.
Revenue growth matters
Paper that proves high revenue growth = high returns.
Read the receipt
Earnings acceleration matters too
Paper that proves high earnings growth = high returns. Buffett mentions this almost daily as well.
Read the receipt
Benefits of Diversification is negligable after 30 stocks
A classic paper. 20 to 30 names is ideal. If you want more than that you should just buy the index.
Read the receipt
The point
I do not need 100 pretty-good ideas. I need the best 20 to 30.
That is all S Tier Stocks is trying to do. Take the chaos, score it, argue with it, update it, and make the best ideas easier to find.