Friday, October 5, 2012

Mossie - Rules for Buying Shares

1) Stocks must be down by half on 52 weeks basis.

2) Hopefully, the stock must have no debt or gearing cannot exceed 30% of shareholder funds.

3) Must have rational & good management.

4) Growth rate over PER must be 1 or more, eg if growth rate is 10%, then would be willing to pay 10x PER.

5) ROE must exceed 12%.

6) Signs of insider buying.