Stock investing is a pursuit that hopes to increase wealth
through investing assets in companies and businesses that we believe will grow.
Thus, each investor seeks to create value by understanding stocks and coming up
with a strategy. Rubbing a rabbit’s foot might work well for some but when you
are dealing with a lot of money, or company assets, you think of a system or
strategy.
Thus, my pursuit is to find a strategy and see if it works.
So far it has been working and reached a 90% growth rate but then receded to
about 76%. I'm not a big investor, a very small one, but the little egg is
growing. It’s the inner workings of the process I'm more worried about. The
portfolio appears to become more stable.
(As a disclaimer I’m not a financial analyst and not your stockbroker
so you should contact them. This is just a discussion.)
What I like about this article is that it discusses the ways
companies can increase earnings which includes reducing costs, raising prices, expanding
into new markets, selling more in current markets, revitalize or close
operations.
If a company has a plan they will be willfully moving into
one of those directions. Hopefully not closing but certainly a merger is one
option. Thus, looking at the financials and their ability to capitalize on
their current position, based in market trends, and with their own resources is
a good place to start.
The following Peter Lynch "Understandable" Stocks
have a few key points.
-Look for smaller, moderately growing, reasonably priced
stocks.
-Pick stocks one by one in a bottom-up approach.
-Familiarize yourself with the company
-Categorize companies to you understand them.
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