Hi, this is Money Girl's guest host Andrew Horowitz from the Discipline Investor

Podcast. And today on Money Girl, we're going to learn how to find potential stocks to invest in with the use of a quantitative screening tool.

Webster's Unabridged dictionary states that the word quantitative can have varied meanings.

For our purposes, we will look at only two.

Quantitative.

The math definition is the resolving of problems by reducing the conditions that are in them to equations.

The logic definition states that the tracing of things to their source and the resolving of knowledge into its original principles.

So essentially we're looking to utilize simple or even complex equations to find stocks

that meet certain criteria through an automated system.

In my book, The Discipline Investor, I provide a blueprint of using investment techniques that I call

Quanta Funda Techna.

The first part of that phrase is what we're going to focus on today, quantitative analysis.

In the book we go into the process in great detail, but today I'm going to give you a compressed

tutorial and a lesson on how to use MSN money stock screening system.

This is such an important component of investing that I dedicated an entire chapter to

simplifying and explaining the process in order to make it easy to get started with investing

right away. Yes, anyone can do it.

Here's a quick clip from the audiobook that explains some of the basic principles.

Quantitative analysis attempts to remove the emotions. that explains

and the basic principles. Quantitative analysis attempts to remove the emotional side of the process

by means of filters, screens, and searches

that are based on historical facts.

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