20 Free Financial Due Diligence Resources (With Examples)

Person sits on a couch with his computer while the floor displays numbers as a watch. — 20 Free Financial Due Diligence Resources (With Examples)
Last updated: Aug 29, 2022

There are a lot of good investing resources out there. And some have taken me a while to find. And the usefulness of some of these is great, as I will show you here.

Some of these website resources have a premium version. But it is not required for making proper financial due diligence.

I have chosen to exclude Bloomberg Terminal. Because it is too expensive for the majority of people. At a staggering $ 2000 per MONTH.

And everything else that does not have a free version.

1. Sec.gov - Edgar

Stocks & Funds

Edgar Company Search

Underrated and the best tool there is for US companies. Using this tool is almost a must.

Here you can find all the company reports as the 10-k. In a standard format which makes it very easy to compare companies.

Nothing wrong with doing 90% of your due diligence here. There is a reason why I picked this first.

Every filing that a company has to report do exist within Sec.gov

Even has an API if you want to build an application or use it for one.

2. Morningstar

Fund Holdings

Morningstar.com

I prefer to use this for funds, like comparing funds over long periods of time. You can also see the fund holdings in a simple matter.

Displaying graphs next to each other makes it clear seeing if they are only mimicking the market.

There is also a lot more information here to help you do an analysis.

Free Morningstar Premium trick: Some people can get morningstar Premium using their local library card.

3. ROIC

Financial Information

ROIC.ai

30 years of financial data. And in this age, data is king.

And they display the ratios year by year in a simple matter.

Many key ratios are otherwise pretty time-consuming to find out yourself. And yet, alone not display 16 years at least.

4. FRED

US Macro Data

Fred.stlouisfed.org

The official website of the US Fed.

Here you can find economic data. And it is pretty easy to find.

For example, searched for the unemployment rate and got a graph from 1948 to the present age.

Say you want to see if the inflation is high compared to the historical average. Well, you are in luck because of this website.

Here we can see how serious something is. Like if the inflation is actually high in a historical sense.

There is a lot more US micro data here.

5. OpenInsider

Insider Trading & Options

OpenInsider.com

See if insiders are buying/selling. There are several reasons to sell stocks but often only a good reason to buy them.

The people working inside a company know more than the average joe. This means they have an edge, so if they are buying, it can be a good sign.

For me, selling is less important because the insiders can be selling to afford something else. As a house, yacht, or whatever else insiders buy.

6. Dataroma

Institutional investors data

Dataroma.com

See what the institutional investors are holding, buying, and selling. Keep in mind that institutional investors own the majority of all public equities.

Institutional investors own 80% of all stock in the S&P 500.

Dataroma makes it easy to see if they add or reduce their ownership. Also, see how big a part of their holdings is of extreme usefulness.

Would you want to see Warren Buffet's portfolio? Well, here it is, you're welcome. Thanks to Dataroma

Or any other Institutional investors such as Michael Burry from the big short. Or Charlie Munger (Buffet's BFF). Or whoever else there is.

7. FINVIZ

Stock Screener

Finviz.com

The most popular free stock screener.

A stock screener is great at finding stocks of interest, at least for being free.

Stock screeners are great at findings stocks. That meets the given criteria. Say you do not want stocks that are unprofitable. And selling for lower than their book value, a screener can find that out fast.

19 Best FinViz Screens