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The Pros and Cons of Screening for Companies
When it comes to investing, there are two main approaches: brute force and screening. Brute force involves going through a large number of investment ideas, quickly filtering out the ones that aren't interesting, and spending more time on the ones that are. It may be tedious, but it ensures that you don't miss any opportunities. On the other hand, screening involves using specific financial parameters to narrow down the investment universe. However, many investors use this method, resulting in everyone looking at the same list of companies. To stand out, it's better to use more comprehensive screens. Overall, both approaches have their pros and cons, but with experience, it becomes easier to say no to certain ideas.