How to pick stocks and build convictions
Cleared CFA Level 1 recently and now trying to actually learn how good investors/analysts pick stocks and build conviction.
I understand the basics of financial statements, valuation concepts, ratios, DCF, etc. from the curriculum, but when I look at an actual company, I still feel lost on questions like:
How do you decide a stock is genuinely undervalued?
How do you build conviction beyond just “numbers look good”?
How do you differentiate between a good company and a good stock?
What does a proper equity research process actually look like from start to finish?
How do experienced investors form an investment thesis and know what really matters?
I also want to learn how to write proper equity research reports. Right now if I open an annual report or earnings call transcript, it feels like staring into a giant financial jungle with a butter knife 🌿
Would really appreciate advice on:
How beginners should start learning stock research
Best way to practice
Resources/books/channels you’d recommend
How to develop independent thinking instead of blindly copying market narratives
How you personally build conviction before investing