Growth Stocks |
Goal: Seeks capital gains by investing in growth stocks of various
types without the use of much margin. |
Target Gains |
Expected Return: 20% to 25% or plus a year is possible based on
complete bull and bear cycle. |
Dynamic Growth |
Stock Selection: Firms with unique growth potential earnings due to
a major positive development in their industry or product line. Some past
winning examples would be Microsoft Corp. (MSFT), Home Dept Inc. (HD) and
UnitedHealth Group Inc. (UNH). These firms showed steady earnings growth as
they came out with new products, or expanded operations. |
Time Horizon |
Timing: We generally take partial profits in the early stages of a
stock's move. However, our goal is to hold an issue through a major part of its
up cycle. Of course that will depend on the nature of its business growth and
stock market conditions. On average we can expect to hold a stock from six
months to two years. |
Strategy |
We want to hold only long positions of the strongest stocks when
the stock market is in an up trend, or a bull market. We will go more to cash,
when the market looks toppy. However, individual stock action will be the
primary considerating. During a bear market phase, we most likely will be more
in cash since protective stops will take us out of stocks and we most likely
will not find good growth stocks to buy. Remember, one can make good money in
the stock market during a bull phase, but keeping it during a bear phase is
just as important. |
Portfolio Suitability |
Growth investing is powerful method, especially during bull
markets. Substantial appreciation can take place. This method is good for
individual, institutional or IRA accounts. |