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Getting started With ChartMill For Long Term Investors (Value, Quality, Growth, Dividend,...)

By Kristoff De Turck - reviewed by Aldwin Keppens

Last update: Feb 12, 2024

Long-term investing is a strategy that involves holding onto investments for an extended period, typically more than a year. This approach allows investors to capitalize on the power of compounding and navigate through market volatility.

In this article, we will cover some basic trading ideas in ChartMill that will get you started with long term investing strategies.

Long-term investors prioritize understanding a company's financial health, analyzing its balance sheet, income statement, and cash flow. They delve into metrics like revenue growth, earnings per share, and return on equity to gauge the company's overall performance.

Unlike swing and day traders who may rely heavily on historical price movements and technical indicators, long-term investors concentrate on a company's future growth prospects. This involves assessing the market potential, competitive landscape, and the company's ability to innovate and adapt to changing industry trends.

Understanding a company's competitive positioning is crucial for long-term investors. They evaluate factors such as the company's market share, brand strength, and the durability of its competitive advantages, seeking businesses with long-term resilience.

Four prominent methodologies within the realm of long-term investing are:

  • Value investing
  • Quality investing
  • Growth investing
  • Dividend investing

Trading Ideas for Value Investors

Value investing, popularized by legendary investor Benjamin Graham and his disciple Warren Buffett, is centered around identifying undervalued stocks.

Investors following this strategy seek out stocks trading below their intrinsic value. The idea is that the market has temporarily mispriced these assets, providing an opportunity for investors to buy low and sell high.

Valuation Screens - Undervalued Stocks

The Decent Value Stocks screen is a Fundamental (FA) screen which will filter for stocks with a good fundamental valuation, while still showing decent profitability, health and growth.

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Valuation Screens - Decent Value Stocks

This screen provides a selection of stocks that may be of interest to the value investor. Be sure to read the accompanying article for more detailed explanations regarding the use of the filters.

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Trading Ideas for Quality Investors

Quality investing prioritizes companies with strong fundamentals, stable earnings, and a proven track record of consistent performance.

Investors following this strategy believe that companies with enduring competitive advantages and robust financial health are more likely to weather economic downturns successfully.

Caviar Cruise Base - Searching for Quality

In this screen we apply some basic filters to find stocks which qualify for quality investing. Quality investors only invest in the best and most profitable companies available.

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Terry Smith: Quality at fair price

A screener inspired by the work of Terry Smith, founder of Fundsmith. The screen finds quality companies while also taking into account fair pricing.

The output is meant to be investigated deeper for long term buy and hold.

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Compounding Quality Screener

A screen as described by Compounding Quality (@QCompounding), a former professional investor. The screen focuses on quality stocks with low capital intensity and generating increasingly large free cash flows.

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Trading Ideas for Growth Investors

Growth investing revolves around identifying companies with above-average earnings growth potential. Investors following this strategy are typically drawn to businesses operating in emerging industries or those with innovative products and services.

The goal is to capitalize on the company's ability to reinvest profits for expansion, leading to an increase in share value over time.

In this article, we concentrate on trading ideas that focus purely on fundamental growth parameters. However, typical growth strategies often use elements from technical analysis as well. More on that can be read in the article "Getting started With ChartMill For Swing and Position Traders in Growth Stocks”.

The little book that makes you rich - growth stocks

This configuration of the stock screener was created based on the rules described in the book "The little book that makes you rich", by Louis Navellier. The book defines eight criteria that should be met before a stock qualifies as growth stock which fits the system.

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Peter Lynch Strategy

The Peter Lynch Strategy is a long term investing strategy, combining growth and value: finding decent stocks which are able to grow to hold for the long term, while not overpaying.

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Trading Ideas for Dividend Investors

Dividend investing involves building a portfolio of stocks that pay regular dividends. This strategy aims to generate a steady income stream, making it particularly attractive for income-focused investors.

Dividend Screens - Decent Dividend Yield, Financial Health and Good Dividend Growth

This screen shows somewhat financially stable companies that pay reasonable dividends and maintain a good dividend growth%.

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Dividend Screens - Highest Dividend Yield (minimum 8%)

This screen shows companies offering the highest dividend yields (minimum 8%). Keep in mind that high-dividend stocks are not without risk.

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