Investing is a long-term journey, which sometimes requires adapting to the winds of change.

Last November, I mentioned it was the right time to do just that. Our 7investing scorecard was getting bloated, and yet we were continuing to pump out seven new more recommendations every month. Our subscribers were literally telling us to slow down: that we were writing more content than they could read, recommending more stocks than they could buy, and giving advice was getting lost in the flood.

We responded by making a course correction. Rather than publishing seven new picks each month, we’d now publish just two. And we’d begin publishing Conviction Rating Reviews and Best Buys to allow subscribers to quickly find our highest (and lowest) conviction ideas.

While that evolution of our service was a good one, there were still several challenges that remained.

One was how to address conflicting opinions about the same stock. Sometimes one advisor (or advisors) would think a stock is a Strong Buy, while another would think it’s a Sell. Being open to contrarian viewpoints is important. But when it came to stock-specific investing advice, we needed to have a single final opinion.

And even after cutting back on the new recs, our scorecard is still too bloated. The stock market’s recovery from its 2022 lows allowed us to outperform the broader market’s gains. But I still want to be more aggressive about cutting several of the underperformers and the lollygaggers from our scorecard. I want to be more laser-focused on giving recommendations about what stocks you should focus on when selecting from the thousands of publicly-tradable options available.

So I think now is again the right time to announce another important change.

Beginning in August, 7investing will no longer be represented by a team of lead advisors. I will solely be responsible for the new recommendations added to our scorecard, for updating our Conviction Ratings, and for selecting our monthly Best Buys.

Our advisors are great people. They’re fantastic investors and they’re my lifelong friends. We’ll continue to work together to empower individual investors. You’ll still see them sharing insights in our Community Forum and appearing as guests on our podcast.

But in terms of offering stock picks and research to our subscribers, 7investing will follow a new structure going forward.

We will now feature all of the following:

• 7investing Recommendations – On the first morning of each month, I’ll publish an Official Recommendation Report. This represents the one company that I’m most excited to add to our scorecard. It could be a re-recommendation of a former pick like Duolingo in June or a completely new company like Booking Holdings in March. 7investing will continue to feature and track the real-time performance of all official picks on our Recommendations Page.

• NEW 7investing Community Recommendations – We’re introducing something new! 7investing’s Community is an incredible group; individual investors based on all corners of the globe who are researching mega-caps, micro-caps, special situations, and foreign-based companies. We’ll now offer an opportunity for you to pitch your favorite investing ideas and will select up to seven of these ideas to be featured alongside our official recommendation every month. While these Community Recommendations won’t be tracked on our official scorecard, they’re fantastic as bragging rights, for cocktail party discussions, or for hanging on the refrigerator.

• NEW Subscriber Calls – The best way to make stock recommendations more real is to discuss them with others. We’ll hold a Subscriber Call in the first week of the month, though they will look a bit different from what we’ve done in the past. I will share a formal presentation of my newest recommendation, but will also open things up for a more informal discussion. All stockpickers of the Community Recommendations are encouraged to present their ideas as well, and the one-hour call will be hosted on Zoom.

• 5 Best Buys – The Best Buys have consistently been our subscribers’ favorite feature every year. From across our entire universe of coverage, these represent the most compelling of our existing ideas right now. I’ll now be prioritizing five Best Buys every month (with higher allocations going to the higher-conviction ideas), will publish them on the 15th of the month, and we’ll continue to track them on our Portfolios Page.

• NEW Watch List – As vast as our scorecard is, there are still plenty of new opportunities that we haven’t yet discovered! The Watch List of New Ideas will include both qualitative and quantitative analysis, as well as a scoring mechanism to evaluate how the ideas stack up against one another. My Watch List helped introduce several new ideas to our scorecard in 2024 — including BlackRock and onsemi — and currently includes DoubleVerify and Synopsys. I’ll publish my top Watch List ideas and the scoring metrics on the 15th of each month.

• NEW Discounted Cash Flows – One popular feature has been my Discounted Cash Flows, which are in-depth valuation models that seek to determine what a stock is fundamentally worth. I’ve recently done DCFs for fast-growing companies whose businesses are reaching an inflection point. I’ve gone on-record and said that Rocket Lab is vastly undervalued, that Coupang is moderately overvalued, and that Tesla could be either undervalued or overvalued. I publish my initial DCFs to the public forums and then update them in future iterations for subscribers.

• Company Updates – Continual updates are the foundation that our Conviction Ratings and Best Buys are built upon. I’ll publish at least 3 Company Updates every week, to continually check-in on our 163 unique active recommendations. Each Company Update will include a Conviction Rating (which spans from “Strong Buy” to “Potential Sell”) and also a Risk Rating (from “Low Risk” to “Very High Risk”). The updates will also feature insights from our partners, such as key performance indicators from FinChat, financial snapshots from Ycharts, or short interest graphs from Ortex.

• Community Forum. If you haven’t yet, join today for free! Our Community Forum is the 24/7 water cooler conversation where investors chat about important company updates or the stocks they’re currently buying or selling. The Forum is free for anyone to join, though the stock-specific channels are reserved for active subscribers.

So to recap: 7investing will now leverage a ton of research to laser-focus on providing you with our very best ideas.

There’s a treasure trove of information contained in the 350 recommendations we’ve made of 226 unique companies during these past four and a half years. Now’s the time to mine the diamonds. To dig through this incredible amount of research effort and to put a spotlight on the highest-conviction ideas.

Finding the stock market’s best ideas has always been my passion. Navigating this complex journey is what empowered my own financial future; to take the entrepreneurial leap while also supporting a family. I’m loving the opportunity to share this investing passion with others. And I’m relentlessly striving for 7investing to be a service that you’d genuinely describe as diligent, innovative, and valuable.

I’m so excited to begin this next chapter with you — to find the market’s best opportunities and to empower you to invest in your future!

Wishing you the very best,

Simon

Simon Erickson
7investing Founder & CEO

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