Simple Categories to help define my process
As I have written articles for this blog, my personal investment criteria have evolved and changed. I have discovered the types of companies that interest me as investments and subjects to write about. I do not manage money for anyone and want my personal stock accounts to reflect my philosophy and views. Through the research I have done here, I have found there are a few areas that I prefer to focus on. Here they are:
- Income stocks: I am very interested in stocks that pay large dividends. I like getting the cash to put back to work. Short term stock prices reflect a lot of fears about a company that may affect the stock price, but the dividend can still provide a balance to the return.
- Small cap stocks. For me, this is companies with a market capitalization of less than about $2 billion. Small caps have more room for multiples of the initial investment returns. They are also less analyzed, and often inaccurately, by the Wall Street analysts.
- International and emerging markets. The U.S. is a very competitive place, and if a company has a really good, really profitable idea, competition will soon follow. In many other countries a good company with a good business can stay that way for years with little or no competition.
That about covers the types of companies I am looking for. I then try to find those that have something that sets them apart and will allow continued and growing profitability. It is a fairly simple idea, but I put a lot of work into digging into whatever I can find about a stock that catches my eye.
Back to the title of this post, I have simplified my category list to more closely align with the bullets listed above. The 20 Stock Articles page on this site give a listing of selected posts by their categories. I believe it is a good way to get an overview about what is going on here.
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