📈7 Golden Rules for Investing 📈

Prolific American stock picker Louis Ehrenkrantz was known for his ability to predict social & political developments - and identify companies that would benefit most from these events

A thread of his 7 golden investing rules
👇👇👇

Rule 1️⃣: Develop a large appetite for reading

- It will hone your instincts for finding successful companies

Rule 2️⃣: Don’t over-diversify

- Ehrenkrantz states that 10 stocks in at least 3 sectors is enough for the average investor

Rule 3️⃣: Stick with your winners and sell your losers

- Do not automatically sell when the stock hits a target price but continue to hold as long as it performs well and has good prospects for the future

Rule 4️⃣: Look for top quality out of favour companies

- Companies that produce an array of high quality products/ services or in the process of bringing high quality products/ services to market

( $TDOC and $FSLY in H2 2020 spring to mind here)

Rule 5️⃣: Don’t worry about earnings if a company makes a high quality product or provides a high quality service

- Strong earnings growth will follow as high quality leads to high demand which leads to high sales