Beyond Wall Street, the art of investing by SL Mintz, Dana Dakin, Thomas Willison
5 Basic investment principles
- Low price-earnings ratio
- High dividend yield
- Strong company fundamentals
- An eye on the big picture
- You got to keep an open mind
10 guidelines
- Price-earnings ratio below that of general market
- Demonstrated or provable fundamental growth of 7% or better
- Yield protection in about 40% of this segment
- Quality company in growing field
- No more than 5% of the floating supply
- Clear understanding of the company’s franchise and the customers need for the product
- Record of persistent annual increments of earnings, virtually without interruption
- Absence of cyclical exposure unless compensated for importantly by low multiple
- Easy channel of communication under duress to management
- Thorough canvassing of industry information sources
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