These are the questions that new investors love to ask, what type of rate should I go for? Should I consider rates in America or Japan? Or how about the new read that was listed not too long ago? Should I include that in my portfolio as well, and so forth. With the thousands of listed reads being scattered across the world and many more waiting to come on board, it comes as no surprise that one can be quite lost and overwhelmed by the vast choices available. So how do we even begin to search for reads that are right for you?

Well, firstly, we look towards online stock screeners to make our search efficient. The list shown in this slide shows online screeners that I have selected for you each Stock screener is different and you should take some time to get used to them. Not to worry. This list of screeners is included in your summary notes under this core section. But hold on, before you go ahead and decide which screener to use. We need to make our search effective and to do so, we need to come up with clever filters.

So when it comes to clever filtering, here are the four principles to follow. The first principle is competency. And here by competency I mean sticking to what you know best. For instance, when new investors asked me which country has the best reads, the competency principle would answer that for me by instructing investors to pick reads that are listed in countries that are familiar to them. So if you live in the States, consider using this screener called thin visit.com if you live in Japan, US Japan hyphen read calm and so on. Likewise, when it comes to type of Route, should you go for retail or hospitality reads?

How about commercial or industrial reads? The answer once again is to pick the industry that you know best one that you have been working in or have a respectable amount of knowledge on right. So, once the competency principle is fulfilled, we have to consider the three other important principles and they are the consistency principle, which tells us to look out for performance reliability. The reason for doing so is that we do not want to invest in any reads that are unable to continue to give us sound returns. Next, the leverage principle which helps us ensure that we do not invest in reeds that are overburdened with debts. This is especially important if you're looking to invest in countries where there isn't a regulatory debt limit imposed on the rates.

For example, the US rates and lastly, the reasonable expectation principle, which basically takes into consideration your yield expectation and whether that expectation is reasonable for the selected type of root. To help you better understand how to apply these four principles Allow me to demonstrate. First, I take a step back and think what a mesh familiar with. I'm familiar with trading in the US market. And given that I have worked in the hospitality industry, I want to invest in something but I know reasonably well. So I've decided to use fin vis calm.

I'll click here and a screen will pop up. Excellent. When you were inside the website, please click on the screener tab. Over here, it is located on the left hand side under the giant invis logo. Once you have clicked on the screener tab, you will see a dashboard of cells to click on. Don't be too overwhelmed by the cells in your own free time, do take some time to read and understand each of the cells in the dashboard.

The rather insightful now, locate the industry sell located under the descriptive tab. Click on it and you will see a list of industries to choose from. Scroll down the list and locate the category repeat hotel slash motel. Press r on your keyboard if you cannot locate the root hotel motel category Right. Once I click on it, the screener will generate a list of hospitality reads for me. At this point in time, the rate that I see here fulfills my competency principles.

Now for the other three principles, I want to only invest in those hospitality reads that have been consistent in their performance. How I factor this in is to locate the fundamental tab, the tab just beside the descriptive tab over here. Click on the fundamental tab and the dashboard option below changes now pinpoint the sales growth past five years sell. Click on it and scroll down. Select the positive more than zero percent option. Once you have done that, the consistency prints Vote is fulfilled.

Now for the leverage principle on the same fundamental dashboard, finally debt and equity and the long term debt and equity cells. If you can't locate the cells quickly enough, simply press control and F together on your keyboard to locate the cells. For each of these cells, scroll down and click the under 0.7 option. Doing so will filter out all those hospitality reads with high debt ratios. If you are more risk adverse, choose the option that states under 0.5. Once you have done that, the leverage principle is fulfilled and we are left with the reasonable expectation principle.

To fulfill the last principle we will use the dividend yield cell to define your minimum acceptable yield Locate the descriptive tab again. Click on it, then proceed to locate the dividend yield cell. I specified over 6%. Doing so will filter away any hospitality reads the distributed less than 6% yields for investors. Hence, I'm left with these four hospitality rates. And in doing so, let me ask you this, have we fulfilled the reasonable expectation principle?

The answer is no. The last principle forces you to think and reflect to fulfill at thoroughly you have to contemplate whether this 6% yield is worthy enough for you. doesn't live up to your expectations. Because the list of us hospitality reads we are looking at only yield 6% a year. You see some investors might find a yield of 6% scornfully low, and it is perfectly fine to feel that way. In an ideal world, all of us want amazing yields of 20% and above.

But here we come to the concept of reasonability. Is your expectation reasonable? How do we set our expectations in such a way that they become reasonable? We have to take into consideration the risks that this type of read brings, as compared to other types of investments. Are there other alternatives with similar yields and risks, consider the current interest rate environment and the US hospitality read industry yield as a whole. At this point in time, a yield of 6% seems fairly adequate to me.

It is more than the industry's average and I cannot find a better alternative, hence my selection. Now, back to the presentation You can take some time to explore great stock screeners like fin vis play around with the sales and add or subtract criterias. But please remember our objective instead of a, which is to obtain a list of potential investments, such that we do it efficiently and effectively using filters that are relevant and smart. So in summary, these are the concepts we have gone through in this lecture. With that step a is completed. Yeah, a pretty simple step I would say.

Now, let's move on to the next exciting lecture, step beat See you there.