Golden Rules for Stock Selection

Golden Rules for Stock Selection

  1. Pick financially sound companies, preferably debt-free
  2. Choose companies that respect capital.
  3. Always stay with leaders in the industry.
  4. Don't buy underlying businesses, buy profitability.
  5. Don't ignore absolute value like earnings yield.
  6. Monopolistic entities make all the money. But be prepared to pay the price for it.
  7. Consolidating businesses are better than fragmenting businesses.
  8. Never ignore Return on Capital Employed and Return on Net Worth.
  9. If there are many competitors, don't bother to pay even the market valuation.
  10. Always stick to what you know best.

Comments

Post a Comment

Popular posts from this blog

The Upanishads - An Introduction

Image
"You are what your deep, driving desire is. As your desire is, so is your will. As your will is, so is your deed. As your deed is, so is your destiny" The Upanishads , the Bhagavad Gita , and the Dhammapada - are among the earliest and most universal of messages, sent to inform us that there is more to life than the everyday experience of our senses. The Upanishads are the oldest, so varied that we feel some unknown collectors must have tossed into a jumble all the photos, postcards, and letters from this world that they could find, without any regard for source or circumstance. Thrown together like this, they form a kind of ecstatic slide show - snapshots of towering peaks of consciousness taken at various times by different observers and dispatched with just the barest kind of explanation. The Dhammapada , too, is a collection - traditionally, sayings of the Buddha, one of the very greatest of explorers of consciousness. In this case the messages have been sorted, but not...
Read more

10 Free websites that feel illegal to use

Image
1. Convertio.co: Convert files to any format you want for free. Here https:// convertio.co 2. http:// Microcopy.Me : Find persuasive headlines and slogans. (Perfect for writing threads) Here https:// microcopy.me 3. http:// Remove.bg : Remove the background from your image and add in any background you like. Here https:// remove.bg 4. Pexels: Download high-quality stock images for FREE. Here https:// pexels.com 5. Otter AI: Otter automatically records and transcribes your meetings. Here https:// otter.ai 6. Quillbot: Quillbot rewrites everything as plagiarism-free text. Here https:// quillbot.com 7. Loom: Record your screen and yourself at the same time. Like zoom but better. Here https:// loom.com 8. Jenni AI: An AI auto-writing tool that automatically writes for you. Here https:// jenni.ai 9. Temp-mail: Temp-mail gives you a temporary email and inbox because who wants to give out their actual email address? Here https:// temp-mail.org/en/ 10. TinyWO...
Read more

Biases in Decision Making

10 Biases that distort our Decision-Making:   Affinity Bias - We prefer people who are similar to us. In thinking, looks, and behavior. Reactive Devaluation - Automatically devaluing opinions from opposing sites or people you dislike.  Illusion of Asymmetric Insight - We tend to believe our knowledge surpasses the knowledge of our peers. False Consensus Effect - We overestimate the degree to which others agree with us. The Ostrich Effect - The tendency to avoid negative (financial) information by pretending not to see it.  Illusion of Validity - Our tendency to overestimate our ability to accurately interpret and predict outcomes.  We draw conclusions to make a story coherent and then ignore possible alternatives completely.  Hyperbolic Discounting - We are wired to prefer instant gratification.  Even when offered significantly more in the future.  Post-Purchase Rationalization - After a buying decision, we immediately erase all doubt...
Read more