Company Classification
Companies that grew 2 to 4 % annually, these are slow growers
Companies that grew 10 to 12 % annually, these are stalwarts, generally multi-billion dollar companies
Companies that grew 20 to 25 % annually, these are ten baggers, these are companies that have potential to 10x your money
Identify cyclicals, these are companies that experience regular periods of growth and slowdown
Identify asset plays, these companies own valuable assets like real estate that can lead to massive profits
Identify turnarounds, these are company that are struggling but have capability for fast recovery
Identify companies with large market share in any sector or niche
Identify companies whose products are used by Businesses
Identify companies with high investor confidence
Price to earnings ratio tells how many years it will take you to recover your initial investment in other words P/E of 40 = 40 years
Well priced stocks will have P/E ratio that's < = company's growth rate
Tactics that lead to improved earnings are
plans to cut expenses, close unprofitable segments, increase prices or sales, expansion into new territories
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