How We Pick Our Stocks

We believe you should have a connection with the companies you invest in.

Buy what you know. Own what you believe in. Hold for the long term.

We want you to invest in companies that you understand and believe in. But it’s not enough to just love a company – you need to make sure it’s a good investment too. That’s why Rubicoin selects the best stocks we can find on the market to feature in our app.

Believe it or not, the everyday consumer is best placed to understand what makes a good company. This is because you interact with their products and brands on a daily basis.
You can see the vast array of products in Coca-Cola’s portfolio in your local store. You know what an ice-cold can of Coca-Cola tastes like yourself. You can probably even figure out what their most popular product is. This gives you the consumer edge.

Whenever you make a purchase, you unconsciously look at it in two different ways – rationally and emotionally.

Take, for example, the thought process when buying a new car.

The Rational You looks for things that can be measured in hard numbers.

 

  •  Fuel type
  •  Fuel consumption
  •  Size
  •  Acceleration

The Emotional You takes into account how things make us feel.

 

  •  Brand
  •  Color
  •  Shape
  •  User Reviews

 

 

In the same way, both a rational and an emotional approach are important for the successful investor. Every stock that we feature in our Invest app has been considered from both points of view.

The Rational considerations for an investor are:

 

  •  Management & employees own shares
  •  Free cash flow
  •  More cash than debt
  •  Great return on equity
  •  Sales growing year-on-year

The Emotional considerations for an investor are:

 

  •  Strong company culture
  •  Sustainable competitive advantage
  •  Customers who love the product
  •  A growing industry
  •  Visionary leaders