Investing in Stock- a summary
I hope you noticed a few things about my list of what I look for in stock investing:
- The non-technical factors outnumber the technical factors- at the end of the day, its all about the KISS principle with me. If a company is doing well on main street (the non-technical analysis), the technical analysis, as a general rule (there's always exceptions), should follow. For example, when was the last time you shopped at the Gap? I have not bought a lot there for years compared to the 1990's and neither have a lot of my friends and family (how many khaki's can a guy have?). Look at Gap's stock price- its really struggling.
- My technical factors focus on cash- how much its paying out in dividends, how much free cash it has and how well it makes use of investor's cash. I readily admit that this is influenced by what I do. Businesses with more cash perform better than businesses with less cash (the painfully obvious observation of the day!). Think of your house-hold: the more free cash you have, the greater your options right? Its the same with publicly traded stock-the market rewards companies that knows how to generate and pay out cash.
- There is no rocket science involved in my analysis. Anyone can apply these factors. Do not let the investment industry fool you into thinking you cannot do this.
Labels: Investment strategy

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