March 24, 2013

Peter Lynch's strategy for buying mutual funds

1. invest 100% in stocks
2. diversify among capital appreciation, value, quaity growth, emerging growth/small cap, special situation funds
3. put new money into sectors that have lagged the market
4. stik with consistent performance
5. buy closed end funds at price less than NAV
6. country funds - buy when unpopular

March 17, 2013

Momentum Investing

Buy stocks which fulfill these criteria:

1. Stock is from sector/industry in rotation
2. Strong earnings growth and analyst rating
- earnings growth > 15% over the last 3-5 years
- earnings growth forecast > SP500 & industry growth over the next 3-5 years
-history of earnings surprise
3. positive insider and institutional ownership
4. strong sales growth and high ROE
5. bullish market sentiment
6. stock is near or at buy point (breakout)
7. positive technical indicators


(from Adam Khoo's book)