Investing Principles and Methods Series (IPMS)
This is perhaps the biggest part and the most important element in this series – the outline or format which will keep me in line as I present my work to you in a more practical aspect of stocks investment.
I have thought about this process more than you care to know. This represents the administrative part of the series in which I’m laying out the rules.
I have isolated the list of important requirements that will let me evaluate and determine the merits of US public companies for my investment purposes. I have decided on a new grading method isolating key areas in the target company that allows me to quickly determine an investment merit from a glance.
The four key areas in determining an investment merit in stocks are:
1) Ethical Issues
2) Owner’s Reward
3) Debt Management
4) Value Investment
My analysis will follow an overall pass or fail grading system. The final assessment of a ‘pass’ grade will only be rewarded to companies which pass all five key areas under scrutiny. A company not meeting these stringent criteria will fail the grading process.
What does a pass or fail grade mean to me? This list of companies with a pass grade will be shortlisted for investment consideration, and may ultimately be placed in my investment portfolio.
I will track and present the investment results for you to view at your convenience under the sub-category ‘Portfolio’ within the main ‘Stocks’ page. The goal is to present at least one company per week.
Howard
