Evolving My Investment Strategy: Introducing the New KonichiValue Score
As a dedicated value investor, I have relied on my own scoring system, the KonichiValue Score, for a long time to help you navigate the complex world of Japanese stocks. It has served me well, providing a comprehensive framework that allowed me to unearth exceptional stocks and build wealth. While I am grateful for the accomplishments made possible by the KonichiValue Score, I believe it's time to evolve my approach and focus on a new scoring system that embraces simplicity and the fundamentals of value investing.
My aim is to create a more streamlined, yet powerful approach that prioritizes the most essential aspects of stock analysis, making it easier for me to identify undervalued stocks with strong fundamentals. With this in mind, I have developed a new scoring system that sharpens my focus on four core criteria: valuation, financial health, competitive edge, and dividend yield.
Allow me to illustrate the benefits of this new system by comparing the former and new KonichiValue scores:
Former KonichiValue Score:
Includes five categories: 1. Profitability, 2. Opportunities & Threats, 3. Financial stability, 4. Dividend, and 5. Stock-price.
Although comprehensive, the former system did not directly emphasize the unique selling proposition and key valuation ratios. The categories were also sometimes perceived as unclear.
New KonichiValue Score:
Streamlined to focus on four core categories: 1. Valuation, 2. Financial health, 3. Competitive edge, and 4. Dividend yield
Simplifies the stock-analysis with clear categories and a focus on the stock’s fundamental attractiveness.
Highlights the unique selling proposition and competitive advantages of a company, allowing readers to make more informed decisions if they should purchase the stock or not.
By transitioning to the new KonichiValue Score, I can now more effectively evaluate stocks based on essential financial data and focus on the factors that truly matter for value investing. This refined approach will help me identify promising stocks with greater ease and confidence, ultimately improving KonichiValue’s overall stock-picks.
I am excited to embrace this bold new era of value investing and look forward to unlocking the full potential of the new KonichiValue Score in my quest for financial success and enduring prosperity.
The first stock analysis using this new system will focus on TEPCO (TYO 9501), the company accountable for the Fukushima nuclear disaster, which could potentially present a sound investment opportunity now.
Lastly, if you have any opinions about the old or the new format, leave a comment below: