My Credit Crunch Beating Stock Investment Strategy
With all of the turmoil in the worlds financial markets it can easily seem like there are no good stocks to invest in at the minute.
This is not the case.
In this article I will explain the techniques I have used to make my portfolio increase in size by 19% in the last month.
The news is full of the turmoil in the financial markets.
As a result of the credit crunch the first part of my strategy is to avoid all financial related companies such as banks, insurance companies and other investment houses.
These kinds of companies will be too close to the impact of the current crisis and pose too much risk for me.
Instead I have been sticking to what I call bread and butter companies that provide goods or services to people or companies that are unlikely to be affected by the current crisis.
Next I get a massive head start on my competition.
I do this via a subscription to a services that sends me the results of a computer research and analysis program that analyzes thousands of companies looking for key financial ratios, trigger or other data that indicate the potential for value in a stock.
By concentrating on this short list I am not wasting my time looking at stocks that I do not end up investing in.
I view this list as a sort of top 5% from which - want to select the top company to invest in.
From the shortlist I conduct my own qualitative analysis by comparing the company in question for things such as; website, telephone manner when a call, number of positive/negative stories in the press in the previous few months or even based on whether I like their branding.
Lastly I have a very strict rule that I only buy stock if I am 100% convinced that it will rise.
Before I developed this strategy I found I often invested in stocks simply because I had nothing better to invest in.
On reflection this was a huge mistake that more often than not cost me money.
This is not the case.
In this article I will explain the techniques I have used to make my portfolio increase in size by 19% in the last month.
The news is full of the turmoil in the financial markets.
As a result of the credit crunch the first part of my strategy is to avoid all financial related companies such as banks, insurance companies and other investment houses.
These kinds of companies will be too close to the impact of the current crisis and pose too much risk for me.
Instead I have been sticking to what I call bread and butter companies that provide goods or services to people or companies that are unlikely to be affected by the current crisis.
Next I get a massive head start on my competition.
I do this via a subscription to a services that sends me the results of a computer research and analysis program that analyzes thousands of companies looking for key financial ratios, trigger or other data that indicate the potential for value in a stock.
By concentrating on this short list I am not wasting my time looking at stocks that I do not end up investing in.
I view this list as a sort of top 5% from which - want to select the top company to invest in.
From the shortlist I conduct my own qualitative analysis by comparing the company in question for things such as; website, telephone manner when a call, number of positive/negative stories in the press in the previous few months or even based on whether I like their branding.
Lastly I have a very strict rule that I only buy stock if I am 100% convinced that it will rise.
Before I developed this strategy I found I often invested in stocks simply because I had nothing better to invest in.
On reflection this was a huge mistake that more often than not cost me money.
