Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
The Rule of Five is BetterInvesting's method of letting you know you're not perfect and neither are your stock selections.
It states "For every five stocks you select using BetterInvesting methods,
one will do much better than you expected,
three will do about as well as you expected, and
one will do much worse than you expected."
The Rule of Five forms the basis for the first step of portfolio management, defense.
Here are the three possible outcomes for a stock's fundamentals on the SSG.
Defensive portfolio management's ONLY concern is finding stocks whose FUNDAMENTALS of SALES, PRE-TAX PROFITS, EPS, & PRE-TAX PROFIT MARGIN are not meeting your projections for future quality. Click here for a more indepth discussion of defensive portfolio management or click here to see how the PERT Report is used to implement defensive portfolio management.