We present our favorite ideas each month through recommendation reports. These reports run around 1,200 – 1,800 words apiece and take around 7 – 10 minutes to read through (4 if you’re highly caffeinated). They are also conveniently available to print to pdf format, if you prefer a paper copy for bedtime reading.
Each report begins with a stock chart and a Style Box. The Style Box categorizes the recommendation into three fields: Investing Style, Industry, and Risk/Reward Level. We do this to help you assess whether the pick is right for you and aligned with your interests and risk tolerance.
We then present our most important section: The 7investing Key Takeaway. This is the punchline of why the company is our best idea in the stock market right now.
We follow that with some supporting context, such as what the company does and what’s taking place in its market. We also believe it’s important to lay out the stock’s key risks. Thinking critically about what could go wrong keeps investors from being blindsided.
We then conclude each report with a look at the management team and important metrics. A company’s leadership team makes the decisions that will govern the returns provided to its investors. And key metrics will help you determine whether the company is performing well or poorly – based on the areas that really matter.
Each report contains the following sections:
- Stock Chart – An interactive visual chart of the stock’s previous performance. The timeframe can be adjusted from 1 day to multiple years.
- Style Box – A categorization of the company to help you determine if this idea might match your personal investment style and goals. We classify based on Investing Style, Industry, and Risk/Reward Level.
- The 7investing Key Takeaway – Our overall thesis. Why this company is our best idea in the stock market right now.
- What Does the Company Do? – An explanation of what the company does and how it makes money. We’ll include real-world, relatable examples to make this more interesting and understandable.
- Why is this Company a Good Investment? – An explanation of the aspects of the business that are particularly appealing, which could provide the basis for future investment returns.
- What’s Happening in the Bigger Picture? – A description of what’s taking place in the broader market that the company competes in, and why that could serve as a tailwind to its success.
- Thoughts on Valuation – We discuss how we think about valuing the company and its stock.
- Key Risks – What could go wrong? A list of the most important risks and uncertainties that could lead to investing losses.
- Management and Vision – The leadership team’s background and strategic plan. We also discuss how they’re being compensated and how they’re spending the company’s money.
- What Should We Be Watching? – A list of specific metrics that we can watch to objectively determine if the company is doing well or not.
Our 7 recommendations for the current month appear on the left-hand sidebar of our 7investing homepage. Subscribers can access these at any time. Recommendations from previous months can be accessed through the “Recommendation” tab that appears in the top banner of the homepage.