Maurer’s investment tips
The following is a personal compilation of investment advice geared towards stability in a uncertain global economy.
1) don’t put all your eggs in one basket-diversify.
2) Invest in household and office staples. i.e. food industry and office supplies, space.
3) Steer towards needs of older generation-drugs, mail-order outfits, etc.
4) Stay away from high P/E industries such as research and technology, internet.
5) Focus on recession resistant industries, people will buy theses services and items even in bad times. Try to stay away from regulated industries such as utilities unless really cheap.
6) Only invest in the most profitable firm in a growing industry-they most likely will survive a shakeout.
7) Invest in stocks that survived 1987-lowest P/E ratio first-do research.
8) Realize that when investment firms start advertising for gold bad times generally follow.
9) Keep a cool head-don’t ever listen to hot tips and/or nay sayers—do your own research.
10) Be very scrupulous of accounting numbers-stick with firms that have an excellent record of conservative bookkeeping techniques.
11) Seriously consider companies with solid pro growth management
12) Search for companies where the earnings slope is greater than the revenue slope. They should both be greater than 15% for our goal of doubling every 5 years
13) Uncover one time earnings boosters and discount.
14) Learn lessons from a historical perspective.
15) Do the opposite of what the masses are doing-take advantage of economic theory of demand and supply. Buy when there is blood on the floor.
16) Buy for the long term-if a stock dips significantly buy more shares relatively speaking.
17) Bypass the brokerage industry if at all possible-buy DRP’S directly from the companies that pass your test.
18) Steady as she goes-don’t ever try to time the market-you will almost always loose.
19) Setup automatic investing plans with several DRP’s- you wont even miss the money and it will grow tax free if done within an IRA.
20) Take advantage of any and all work related financial devices-max out your retirement contributions if possible to the point where you are getting the maximum contribution from the company you work for.
21) Don’t be swayed by tax advantaged investments-they basically yield the same or less relatively speaking.
Ben Franklin
“Many have quarrel’d about religion, that never practised it”, “a full belly makes a dull brain”, “he that cannot obey cannot command”, “early to bed, early to rise, makes a man healthy, wealthy, and wise”, “when the well is dry, we know the worth of water”, “a word to the wise is enough”, and “God helps them that help themselves”.
"The noblest question in the world is: What good can I do in it?"
-Benjamin Franklin
Write financial tips for everyone from a planners perspective.
Assemble a mini lecture for basic financial planning for teachers at graces school.
1) Define the process
2)
