3. Slowing Profit Growth is a Warning Sign
Stock growth follows profit growth. When profit growth slows, it may be wise to sell and look for a more promising investment.
Stock Education – Old Version
4. How to find the best stocks – What to Buy
My research points to profit growth driving stock growth. By investing in companies with the best profits, we end up having great stocks.
5. Sharek’s Rule of 72
Sharek’s Rule of 72 states: The number of years for a stock to double can be estimated by dividing 72 by the rate profits are expected to grow.
6. The Logic Behind Sharek’s Rule of 72
Sharek’s Rule of 72 is logical. Let’s assume we have a $20 stock making a dollar in profits. It’s selling for 20x profits. The next year, profits rise to $1.20. …
7. How to Manage a Stock
The next three pages show how to manage the three questions regarding a leading stock What to Buy When to Buy When to Sell The chart to the right is …
8. When to Buy
Purchase stocks after profit Growth of at least 20% is announced and a breakout occurs.
10. When to Sell
Although this (When to Sell ) seems the most difficult thing to time when owning stocks, companies usually give clear sell signals when its time to leave a position. Sell …
11. The Best Stocks are No-Brainers
The best stocks to own are “no-brainers.” They scream for you to buy them — year after year. One of the best stocks of recent decades was Wal-Mart (WMT). In …
12. Certainty
Stocks have personalities, just like people do. Some you can trust, some you can’t. Own companies with high degrees of certainty. Try to gauge if there is a high degree …
14. Growth Opportunity
When you’re looking to add new stock, first evaluate whether the company has ample room for growth. Look for small companies that have the ability to conceivably grow rapidly for …
15. Hot Sector
Birds of a feather flock together, especially in the stock market since stocks within an industry, or sector, usually move in tandem. In my opinion, the number one factor …