100 to 1 In The Stock Market (Thomas W. Phelps, 1972)

  • Why does a fish bite on an inedible spinner?
    Fish: “The last thing I ate was moving. It was good. This thing is moving. It must be good.”
    You: “The last stock I bought was rising. It was good. This stock is rising. It must be good.”
  • Even if 10,000 investors have heard the news ahead of you, it may still prove profitable to you if 10 million investors are going to hear it and act on it after you
  • Wildcatting: a practice instituted by the Securities and Exchange Commission (SEC) that calls for the review of an entire industry whenever critical problems are found within one or two companies in that industry
  • Interest rates can go down because of:
    • Over discounts and the advantage of buying now rather than later
    • The above advantage reduced by the rate of inflation of deterioration in the outlook for profits
  • A stock will grow when:
    • Reinvesting earnings
    • Investing borrowed money
    • Acquiring other company
    • Increasing sales without having to increase invested capital
    • Discoveries of natural resources
    • New inventions, processes or formula
    • Contracts, especially from the government
    • Rising price-earning ratio

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