The Wealthy Investor

Faster Gains system

Fundamental facts, get a general overview of the company and what it is doing
Annual earnings per share, the company’s latest annual results show growth of 20% or more
Supply-demand, check what supply and demand factors govern the share price
Technical Analysis: use the share price chart to determine short and long-term prospects for the company’s share price
Efficient management: check out the management of the company and its ability and motivation to increase shareholder value
Rich in cash, ensure that the company in healthy in cash terms and has minimal debt
Growth in earnings per share: ensure that the company’s EPS shows at least a doubling of figures over five years
Active monitoring: ensure performance stays on track by monitoring the company and its share price regularly
Institutional support: keep an eye on what the main institutional investors are doing in the market
Portfolio building: is in integral part of the 5-level learning progression. Portfolio builders invest for the long term and are psychologically more willing to ride out the dips.
Asset allocation: distribute your funds between different asset classes; cash, property, pension funds, foreign and UK equities to diversify the risks
Yields: a buy-and-hold investment philosophy enables the portfolio to achieve a high and rising return over the long run
Sector analysis: to distribute cash among companies in different sectors, to avoid holding a portfolio that is focused on too few sectors

Respect the privilege of money and never forget that only real risk can provide true rewards

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~ by antinomian on July 15, 2007.

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