Tracking Changes Over Time
Scores aren't static. Tracking changes helps you spot opportunities and avoid deteriorating situations.
Why Track Changes?
1. Early Warning
- Catch deterioration before it's obvious
- Sell before problems compound
- Protect your portfolio
2. Opportunity Spotting
- Notice improving stocks
- Buy before the crowd
- Catch turnarounds early
3. Thesis Validation
- Is your investment thesis playing out?
- Are fundamentals improving as expected?
- Should you add or reduce position?
The Health Checkup
You don't just check your health once—you get regular checkups to catch problems early and track improvement.
Stock monitoring works the same way. Regular checks help you catch changes before they become crises.
What to Track
Score Changes
- Final Score trend (improving/declining)
- Individual pillar changes
- Rank changes within sector
Key Metrics
- Earnings growth
- Revenue trends
- Margin changes
- Debt levels
External Factors
- News and announcements
- Analyst rating changes
- Industry developments
- Competitive dynamics
Key Takeaways
- Scores change as prices and fundamentals change
- Track trends, not just current values
- Improving scores may signal opportunity
- Declining scores may signal trouble
Interpreting Score Changes
Improving Scores
Valuation improving:
- Price dropped (stock got cheaper)
- Or earnings grew (more value for price)
- Action: Potential buying opportunity
Quality improving:
- Margins expanding
- Returns on capital increasing
- Action: Business getting better
Growth improving:
- Revenue/earnings accelerating
- Growth rate increasing
- Action: Momentum building
Health improving:
- Debt being paid down
- Cash flow strengthening
- Action: Risk decreasing
Declining Scores 📉
Valuation declining:
- Price rose faster than fundamentals
- Or earnings dropped
- Action: May be getting expensive
Quality declining:
- Margins contracting
- Returns falling
- Action: Business deteriorating
Growth declining:
- Growth slowing
- Revenue/earnings decelerating
- Action: Momentum fading
Health declining:
- Debt increasing
- Cash flow weakening
- Action: Risk increasing
Monitoring Frequency
Daily (Optional)
- Price changes
- Major news
- Only for active traders
Weekly (Recommended)
- Score changes on watchlist
- Sector leaderboard shifts
- News headlines
Monthly (Essential)
- Full portfolio review
- Watchlist update
- Strategy assessment
Quarterly (Critical)
- Earnings results
- Fundamental reassessment
- Major portfolio decisions
Alert Triggers
Consider acting when:
- Final Score drops 10+ points
- Any pillar drops below 40
- Signal changes (BUY → HOLD → SELL)
- Rank drops significantly
- Major news breaks
Building a Monitoring Routine
Weekly Check (15 minutes)
- Review watchlist scores
- Check owned stocks
- Note significant changes
- Read key headlines
Monthly Review (1 hour)
- Full portfolio assessment
- Score trend analysis
- Watchlist pruning
- Strategy alignment check
Quarterly Deep Dive (2-3 hours)
- Earnings review for holdings
- Thesis validation
- Rebalancing decisions
- New opportunity search
When to Act on Changes
Consider Buying When:
- Score improves significantly
- Price drops without fundamental reason
- Thesis strengthens
Consider Selling When:
- Score deteriorates significantly
- Thesis breaks
- Better opportunity elsewhere
- Position too large
Consider Holding When:
- Minor fluctuations
- Thesis intact
- Long-term view unchanged
Tracking Traps
- Overreacting to daily changes
- Ignoring persistent deterioration
- Not having a monitoring routine
- Tracking too many stocks (focus on what you own + watchlist)
Congratulations! You've completed Module 10. You now know how to use leaderboards effectively to find and track investment opportunities.
Next Module: Sector Context—understanding industry dynamics.