Is it advisable to invest in the list of companies that pass a given screen each month?

No, these screens are provided as a learning tool only. They are NOT investment recommendations, only examples of the companies you would find when applying a specific investment technique. They are supposed to help your research process but the lists are only a first step in the investment process (you may want to duplicate them to add your own interpretation) and further analysis should always be done before actually investing in a company. Please note that the screening criteria used represents Stockopedia's interpretation of the author's investment approach and are not determined or endorsed by the original strategist.

As we say on the screens themselves, you should consider the results of any screen, as candidates for further research, not as a buy list. Screening helps to narrow a search based on pre-defined criteria. It is not a substitute for independent research reflecting your individual criteria for investing/trading. We provide very in-depth stock reports to help with this process, but you must always do your own research too. We always advise reading the company annual reports yourself, as they are a treasure trove of useful context on the business and the management team.

To highlight one other very important issue, the models do not factor in diversification requirements. In some cases, where the Guru criteria happen to very stringent, the portfolio may be very concentrated in either stocks or one sector due to a limited number of qualifying stocks. We deliberately aim to be purist about implementing the relevant screening factors for a given Guru, rather than focusing on whether the resulting list itself is sufficiently diversified - that's all part of the DYOR implementation.