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Old 09-16-2007, 09:00 PM
JTrout JTrout is offline
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Join Date: Jul 2003
Location: Mississippi
Posts: 1,873
Default Re: My simple, safe(?), strategy for stock picking

I have not back tested this, or used any data mine to get to this strategy.
It basically evolved through reading books with a slant toward value investing, as well as looking at what numbers I failed to pay attention to in stocks that otherwise looked to be a good deal.
Example,
stock is at 52 week low, obviously P/E low, projected 3-5 year return high, but
the financial stability is average, and the profit margins have shrunk.
I'm not touting this as the best thing, just what I'ved gravitated toward to minimize risk and keep me from making any big mistakes from hopping on a bandwagon.
One thing about this way, you must have some patience, and you need to have cotton in your ears when it comes to certain plays. (i guess that's two things!)
These stocks didn't get to be close to their 52 week low because everyone is thrilled with them, but
hopefully the other numbers (safety, financial stability, history of strong earnings) will override the short term bad news that has the stock down.

I appreciate all the comments so far. I'm here to learn.
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