What should I put my money on?

Screening Filters

1. Market Capitalization ≥ $50,000,000,000 (Large/Mega Caps)

   • Purpose: Focus on larger, more established companies.
   • Rationale: When someone asks “What should I invest in?” without specifying risk tolerance or time horizon, a reasonable default is to start with financially stronger, more stable businesses. Large-cap companies typically:
     • Have more diversified revenue streams
     • Are less vulnerable to single-product or single-customer risk
     • Offer higher liquidity (easier to buy/sell without big price impact)

2. Beta: LowRisk or ModerateRisk

   • Purpose: Avoid highly volatile stocks.
   • Rationale: Beta measures how much a stock tends to move relative to the market.
     • Low/Moderate beta stocks generally move less sharply up and down.
     • For a broad, non-specific question like “What should I invest in?”, this tilts the results toward companies that are less likely to experience extreme swings, which is often more appropriate for most general investors.

3. EPS (Earnings Per Share) TTM > 0

   • Purpose: Include only currently profitable companies.
   • Rationale: Positive trailing twelve-month EPS means the business is actually making money now, not just promising future profits. This:
     • Reduces exposure to highly speculative, pre-profit or turnaround stories
     • Aligns with a more conservative, quality-focused approach suitable for someone not asking for aggressive/speculative plays

4. Revenue 5-Year CAGR ≥ 8%

   • Purpose: Ensure the company has delivered solid revenue growth over time.
   • Rationale: A 5-year compound annual growth rate of at least 8% indicates:
     • The business is expanding faster than inflation and often faster than the overall economy
     • There’s a track record of demand growth, not just cost-cutting or financial engineering
     • This combines “quality” (profitability) with “growth” (sustained expansion), which is a strong starting point for general investment ideas.

5. P/E (Price/Earnings) TTM between 10 and 25

   • Purpose: Filter for reasonably valued stocks—neither ultra-cheap nor extremely expensive.
   • Rationale:
     • P/E < 10 can sometimes indicate deep value or distress; without more context, that’s riskier for a generic “what should I invest in?” query.
     • P/E > 25 often reflects high expectations and growth priced in, which can be more volatile and vulnerable to disappointment.
     • The 10–25 range targets companies that are:
       • Profitable and not priced like a failing business
       • Not priced at the most speculative, momentum-driven multiples

6. Analyst Consensus: Strong Buy or Moderate Buy

   • Purpose: Align with external professional research and sentiment.
   • Rationale: Requiring a positive consensus from equity analysts:
     • Filters out names that are broadly viewed as overvalued or fundamentally weak
     • Adds a layer of qualitative judgment (future outlook, management quality, industry position) beyond pure numbers
     • For someone asking broadly where to invest, this is a practical way to lean toward companies with generally favorable professional views.

Why Results Match the Question “What Should I Invest In?”

• The filters collectively steer you toward:
  • Large, established companies (stability, liquidity)
  • With real profits and solid multi-year revenue growth (quality + growth)
  • Reasonably valued, avoiding extremes on both the cheap/distressed and hyper-expensive/speculative ends
  • With relatively lower volatility compared to high-beta names
  • And a positive outlook from professional analysts

For a broad, non-specific investment question, this is a sensible default: it narrows the universe to higher-quality, growing, relatively lower-risk stocks that are not obviously mispriced at extremes, giving you a more suitable starting list than the full market.