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stock investing strategy - one that works is value investing



Stock Management Value Overall Rating-Date Of Article stock investing strategy
IBM 8 out of 10 7 out of 10 8 out of 10 FOR SAFETY
AZN 8 out of 10 8 out of 10 8 out of 10
STD 8 out of 10 7 out of 10 8 out of 10

5/16/2009
A simply stock investing strategy that actually works, does it exist? Did you ever wonder if there was a strategy to investing in the market that was a lot simpler than everyone thinks but that would actually work to make money? The good news is there is a strategy that I think works especially for beginners in the Market who want to pursue value investing. The strategy is of course called “value investing” and of course it has been used by investors like Warren Buffet for years to a great success. Warren Buffet has been quoted for saying that value investors will never snatch up all the great value buys in the market because people love to make things difficult that are essentially easy. So for beginners who don’t want to take the time to find small cap and mid cap stocks that might perform well for the long term, there are other safer value buys that anyone can make. There are three rules that you should follow for finding bigger companies that are a value for your money. Firstly the company should have a P/E ratio of no more than 12, Income that is down no more than 10% but preferably A HIGHER net income compared to the year before, a market capital of above 50 billion, and lastly they must pay a dividend. If you use those screening techniques you are likely to find companies that defiantly due to their size have a moat and they are usually too big to fail. So using these handy screening techniques as of the date of this article we find some pretty interesting companies that seem to be doing great here they are:

investing in stocks the right way

-IBM
Yes IBM as of the date of this article seems like a pretty good company to start buying into for a good stock investing strategy. 100 dollars a share which is close to their market price seems like actually a very fair price for them. They are a company that has a very low chance of failing for the long run; their price to earning ratio is less than 12 which is great. They pay a dividend and they have a business model that has obviously worked for years.

-AstraZeneca AZN

What can I say this drug company pays a nice dividend and they seem to be undervalued? The company seems to develop new drugs all the time and their earnings are actually up.

-STD Banco Santan

Seems to be doing well the company pays a huge dividend and they seem to be well managed

As you can see these companies seem not only solid but they are a great stock investing strategy. They are safe solid and will continue to probably do well in the future. The real question that I would like to know is what do other investors around here think of these stocks?

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