|
|
|
Use the Stock Screener to select the top-rated stocks from the S&P CompuStat database.
Choose the number of stocks to view, and choose the size of the companies you want
in the list. Choosing more companies leads to greater diversification, and choosing
larger companies generally leads to less volatility. Eliminate any companies you
do not want to own for any reason; however, you should keep at least 20 stocks in
an effort to properly manage risk.
|
|
|
|
|
|
|
|
Use a cost effective way to purchase the stocks. If the amount you are investing
represents a large percentage of your long-term investment portfolio, you may want
to consider making multiple portfolio purchases over a 12 month period.
|
|
|
|
|
|
|
|
|
In our opinion it is good idea to keep your stocks for approximately one year. The
system is designed to maximize your after-tax returns; therefore, you want any gains
to become long-term by holding them for a year, and you want to sell any losses
before the one year holding period is reached.
|
|
|
|
|
|
|
|
|
Once you have sold any gains and any losses, select and purchase a new portfolio
of screened stocks.
|
|
|
|
|
|
|
|
|
|
