Beyond Wall Street, the art of investing by SL Mintz, Dana Dakin, Thomas Willison

5 Basic investment principles

1. Low price-earnings ratio
2. High dividend yield
3. Strong company fundamentals
4. An eye on the big picture
5. You got to keep an open mind

10 guidelines

1. Price-earnings ratio below that of general market
2. Demonstrated or provable fundamental growth of 7% or better
3. Yield protection in about 40% of this segment
4. Quality company in growing field
5. No more than 5% of the floating supply
6. Clear understanding of the company’s franchise and the customers need for the product
7. Record of persistent annual increments of earnings, virtually without interruption
8. Absence of cyclical exposure unless compensated for importantly by low multiple
9. Easy channel of communication under duress to management
10. Thorough canvassing of industry information sources

~ by antinomian on July 21, 2007.