Wednesday, 11 April 2012

Worthy of a look?


Not sexy, high growth or hot stock.

Warning:  May not be in your "circle of competence."

Look at things that are temporary out of favour.

You wish to buy when the prices are falling or close to the bottom.

You should have a tough time trying to buy something that is NOT near its 52 weeks low.



Worthy of a look?


Moat?Thumbs Up

Cheap?Thumbs Up

Margin of safety?Thumbs Up

Inside my circle!Thumbs Up


Outcome:

No list
Watch list
Yes list

A large percentage of companies are too difficult to analyse, they are outside your circle of competence.  

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