Anyone else had no real process for researching stocks? This is what changed for me
u/Annual_Carpenter_548 ·
Reddit — r/ValueInvesting
· April 08, 2026 at 17:27
· ⬆ 15 pts
· 💬 11 comments
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Summary
The post details the author's evolution from a confirmation-biased, unstructured research approach to a disciplined, process-driven methodology for evaluating stocks.
The author's thesis is that a proper investment process must start with a foundational understanding of the business, incorporate deep qualitative checks (e.g., talking to industry insiders), and define clear sell conditions before purchasing.
Quality assessment: This is a reflective, high-quality discussion on investment process and discipline. It is not specific stock research (DD), speculation, or noise.
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For a long time my process was basically read some stuff, check Morningstar moat, read ValueInvestorsClub if the write up was available, look for the important metrics and check the valuation, decide if I liked it.
The problem was I was starting from the wrong place. I'd already seen the ticker somewhere, already half liked the story, and then went looking for reasons to confirm it.
What I do now is start with a quick 5 minute check before anything else. Do I actually understand how this company makes money. Can I explain it to someone without googling. Do I know their products, who runs it, rough idea of the track record. If I'm honest and I can't answer those basics I just skip it. Most stocks die right here. I looked at Peloton when it dropped 80%, seemed cheap, but I couldn't honestly explain why someone who already owns the bike keeps paying $44 a month forever. Moved on.
The ones that pass that I go properly deep. Not just the standard metrics but the real stuff, how durable is the advantage actually, what does capital allocation look like over 5 years not just last quarter, what's a realistic range of what this business is worth under different scenarios.
The thing that genuinely changed how I research was reading Plural Investing's work where they talk to ex employees, customers, competitors before making a decision. That one conversation with a Foot Locker manager about Nike's shelf space tells you more than any analyst report.
Importantly, before I buy anything now, I also write down exactly what would make me sell. Not a price, a specific business condition. Forces me to think straight before I'm emotionally attached to being right.
Curious what everyone else does here. Do you have a proper structured process or is it more feel based depending on the stock? And do you use any tools to keep yourself honest or just spreadsheets and notes?