This must have been asked before.
What is the general thinking on the minimum stock ranking value for purchasing shares, should you only purchase shares with a ranking of 90+ or is that to high?
Hi trevorjja,
Welcome to Stockopedia!
There is no definitive answer to your question as it will depend upon the investment style of the purchaser.
For example an individual who can forensically dissect a comapnies balance sheet might not be overly concerned by stock ranks if they think they have spotted something interesting.
An investor that is interested in High Quality & High Momentum stocks might well end up selecting high Stockrank shares but they might not be 90+ as the individual might be unconcerned by an expensive valuation that might drag the overall stock rank down.
You might be time poor and want a fire and forget portfolio such as Ed's NAPS portfolio which attempts to buy high stock ranking shares across all sectors. But it could be that the best selection in a sector falls below 90% stock rank.
Etc, etc.
So firstly you need to have a handle on what you are trying to achieve and then you can re ask the question.
I appreciate that this might not be the answer you are looking for but it's really important that you understand your strategy.
Best of luck
Phil
