While some investors might think they have a sixth sense for finding good companies, the rest of us have to do our homework. There’s no better starting point than the regular filings public companies make with the SEC, which are required to detail everything from company finances to potential conflicts and risk factors.
The annual 10-K includes the most information, ranging from quarterly and annual financial numbers to descriptions of business lines and management commentary on growth opportunities and costs. Regulatory filings will also detail any senior management changes, acquisitions, and stock transactions by executives or board members.
All filings for U.S. public companies, and foreign companies that list on U.S. exchanges, can be found online through the SEC’s EDGAR system.