There are obviously many ways to find winning stocks, and I use a lot of them. My philisopy is that there are tons of stocks out there... so I can afford to be picky. I don't have to "settle" for something I'm not completely comfortable with... and this is important because what happens if your not COMPLETELY comfortable and CONFIDENT in your picks... then when the market takes a nosedive... you panic just like the rest of them and miss out on great bargains. So I'm picky... I hate to take too much risk... there is no reason for it in my mind. There are plenty of stocks out there that have GREAT potential with very limited downside and these are my favorites. For example, I am not going to invest in too many airline companies or medical stocks... I just don't need them in my real portfolio or CAPS. Sure, there is great upside in medical stocks, but unless I really understand them, I should leave those to the doctors and focus on what I understand. I am going to go try to find the actual analysis I did on Google (in terms of valuation) and when I do I will post it.