I thought I might post on how I invest. Its not rocket science but there seems to be some confusion around how I outperform the market. Grab a tequila or a store bought coffee (anyone that makes their coffee at home stop reading now) please enjoy or laugh as the mood takes you 👇
As I say this is not rocket science. Basically I am only looking to buy and then sell in the early growth stage of a new business. In simple terms I'm looking to buy as early in the growth stage as possible & sell as late as possible before sales and profit slow.
So how do I find these stocks? The best place to start is to read all 4C reports as they come out & keep records of new companies where revenues increase significantly from the previous quarter. You need to be careful at this point because companies earnings can be seasonal..
I tend to avoid companies who claim seasonality is hitting their revenues. I take this path as I believe if a company's product is really being embraced by consumers in the early months the exponential growth should swamp any seasonal effects. As the company matures...
this may well be a valid reason but keep in mind I am ONLY looking for the early stage growth... So why do I invest in this manner? Firstly because I found that I am good at understanding new products and markets but mostly I choose to invest...