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.
Ideally a stock you plan to purchase should have all of the following characteristics:
• A rising trend of earnings dividends and book value per share. • A balance sheet with less debt than other companies in its particular industry. • A P/E ratio no higher than average. • A dividend yield that suits your particular needs. • A below-average dividend pay-out ratio. • A history of earnings and dividends not pockmarked by erratic ups and downs. • Companies whose ROE is 15 or better. • A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.