If you work with your own investment models you likely use excel to build them, but excel isn’t ideal for many reasons and it costs you in other ways.
First, you need good data and it isn’t just lying around in an easy to import format. You’re either keying it in yourself or paying money for excel downloads.
When you need data from numerous sources – price information, data from different statements and across multiple years - you must merge it from multiple sheets. It's an inefficient process which can lead to data corruption.
After all this data is collected and merged, models built and tested, the net result is one statistic for one company. A stand-alone number without context has limited use. To be meaningful, you need to compare it to similar companies.
This is just a sample of the challenges. You need software that overcomes these problems and is designed for investment model creation.
Surprise! This software exists, it's INVRS and here's how it solves the problems associated with using excel alone for investment analysis.
1. It fetches your data for you.
Just point and click for the data points you want.
2. You build the model in the software using familiar operators and not in an obscure programming language.
Suppose you want to calculate the forward dividend yield and compare it to the five year average and score/rank the quotient. You can create this in INVRS using the same operators and shortcuts you use in excel, optionally validating your equations as you go.
3. Each model is a template that can be used repeatedly.
No need to establish another data source, no risk of it breaking and no need to copy and paste each time you have a new stock to analyze. Once you’ve built your model you can run it repeatedly on different stocks.
4. You can experiment.
Change any of the elements in your models, whether data or formula.
5. Perform peer-based analysis.
Running a model against one stock hardly seems worth it because there’s no context for the result. With peer-based analysis, you can answer the question “how does my target company compare to similar companies?”
6. It archives every analysis automatically.
In excel, refreshing data can lead to the loss of an old analysis. Your ideal software would never let that happen.
7. Find every archived analysis easily.
You can search chronologically, by portfolio and by template. An important feature when you are doing hundreds or thousands of analyses.
8. No flipping between data source and formula.
Best practice in excel separates data and formula. Sometimes you can keep everything on one sheet, often you can’t. Flipping between sheets is a pain when you are checking a complicated formula and if you combine your formulas and data, reproducing it or changing variables becomes difficult.
INVRS separates data and formula while keeping it all visible on screen.
9. Fast graphing.
You can create graphs of your analyses. You can sort the results, add a benchmark, annotate and export. It's easier than in excel and supports other options specific to investment analysis, such as price graphing.
10. Create notes or articles.
If you discover interesting information, you might want to share it. Make notes as you go along and evolve them into articles you can publish or share.
11. It pays you.
You get paid to use the software, whether it is posting your analyses or recommending it to other users.
Go to invrs.com and sign up for a free trial or request a sample analysis. Experience the power of INVRS for investment research.