This Content Is Only For Subscribers
Understand the nature of the companies you own and the specific reasons for holding the stock.
By putting your stocks into categories you will have a better ideas of what to expect from them.
Big companies have small moves, small companies have big moves.
Consider the size of a company of you expect it to profit from a specific product.
Look for small companies that are already profitable and have proven that their concept can be replicated.
Be suspicious of companies with growth rate of 50 to 100 percent a year.
Avoid hot stocks in hot industries.
Long shots almost never pay off.
It is better to miss the first move in a stock and wait to see if a company’s plans are working out.
People pet incredibly valuable fundamental information from their jobs that may not reach the professionals for months or even years.
Invest in simple companies that appear dull, mundane, out of factor and have not caught the fancy of Wall Street.
Moderately fast growers 20 to 25 percent in growth industries are ideal investments.
Look for companies with niches.
When purchasing depressed stocks in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loafs of bank debts.
Companies that have no debt cannot go bankrupt.
Managerial ability may be important, but it is quite difficult to assess.
A top of money can be made when a turned company turns around.
Carefully considerate price earnings ratio.
Find a story line to flow as a way of monitoring a company’s progress.
Find a story lone to follow as way of minoring a company’s progress.
Look for companies that consistently buy back their own shares.
Study the dividend record of a company over the years.
Look for companies with little or no institutions ownership.
All else being equal, favor companies in which management has a personal investment over companies run by people.
Insider buying is a positive sign.
Devote at least an hour a week to investment research.
Be patient.
Buying stocks based on stated book value.
When in doubt, tune in later.
Invest at least as much a time and effort in choosing a new stock.
