The School of Hard Stocks

Searching for Tomorrow's Stock Market Winners Today

We Dissected the Best Stocks of Our Generation to See What Made Them Tick

We dissected the best stocks of our generation, to see what made them great. Here’s what we found out.

History repeats itself in the stock market. Characteristics of top stocks remain the same, year after year.

Armed with this research, you will have the ability to search for tomorrow’s stock market winners today.

Characteristics of Stocks that Fit the Mold

Focus your attention on owning the best stocks in the stock market. Imagine owning your own All-Star team of stocks.

History repeats itself in the stock market. Characteristics of top stocks remain the same, year after year.

Armed with this research, you will have the ability to search for tomorrow’s stock market winners today.

High Profit Growth
Consistency
Under the Radar
Catalyst
Consistency
Beat the Street
Certainty
Hot Sector
Beat the Street

 Here’s MSFT’s one-year chart as of July 1992.

Notice on the right profits were up every year since the company’s IPO.

Along the bottom is MSFT’s qtrly profit growth. Profit growth is strong, this stock was a Buy.

Our ten-year charts show the monthly price data for the stock during the past decade, with profits along the right and the profit growth rate at the bottom.

At the School of Hard Stocks, we are are buy-and-hold investors as in the long-run a stock’s growth is often similar to its profit growth (if the P/E remains consistent).


Profit History
tables display a company’s annual profits (in EPS), median stock price and P/E the stock sold for. Dividend history is included on the far-right. Record profit years are in green, non-record years are in red.

Stocks often have similar P/E’s year-in year-out. Using past history and the future outlook, we estimate a Fair Value for the stock.

Here was have MSFT as the stock peaked at $60 in January 2000. 

Notice qtrly profit growth began to slow. That’s a sell signal.

Blast From the Past

One of the early winners of the computer age was Microsoft (MSFT).

MSFT “fit the mold” and had each of the characteristics of a stock market winner.  

About David Sharek

David Sharek is stock portfolio manager for Shareks Stock Portfolios and founder of The School of Hard Stocks.

Since 2003, Sharek’s Growth Stock Portfolio has averaged a 12% return to its investors (after fees) vs. 8% in the S&P 500. 

Through 2018, $100,000 invested in the Growth Portfolio at inception would have made a profit of $235,000 vs. $185,000 in the S&P 500 during that same time.

David has written more than 2500 stock research reports on the School of Hard Stocks. Utilizing the research posted here in this site, David manages three stock portfolios for his investors: Growth Stock Portfolio, Aggressive Growth Portfolio, and Conservative Stock Portfolio. 

Before Sharek takes a new position in a stock — or sells out of a stock — a research report stating so is posted before trades are entered, although positions are often increased or reduced without notification (as he’s managing the portfolios).  

David Sharek has posted four years of +40% returns in his 16 year career as a stock portfolio manager.

The Bear Market is Over

You Have Some Catching Up to Do

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