A typical investment selection process for a stock picker can be decomposed in 3 steps:
- Screen: build a list of stock tickers from a stock market screen and add in any additional company ticker you would like to own, this list can have 100 to 300 stocks
- Optimize: use the optimizer to obtain a short list of 25 to 30 stocks with good expected return and low risk.
- Analyse: check the details of the stocks proposed, exclude stocks you do not like.
For further reference:
- a selection of finance Books
- a selection of Articles on the topic of portfolio selection
- some considerations on China Large Cap investment vehicles
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