46 out of 500 stocks within the S&P500 make my 5 Simple Rules.
That’s less than 10% of companies which I think are good enough for you to invest in.
Have you done the research? Do you know which ones they are?
Well now you don’t have to because I’ve done the research for you.
My latest book (due out at the end of the month) lists each company from the S&P500 (U.S.) and All Ords (Australia) that fit all my rules.
What would you pay for the time saved for someone else to do that research for you?
Well I think $5 is pretty reasonable (and that’s what the regular price will be) but for the first five days it will be free on Amazon (Kindle version).
Don’t worry I’ll let you know beforehand when it’s free.
But back to the sneak peek.
Here is a little sample of two of the companies in the book:
ABC – AmerisourceBergen Corp
Sector: Health Care
Return on Equity: 24.28%
Earnings Growth: 4.3%
Debt/Equity Ratio: 47.61
12 month stock price increase: 7.63%
Dividend Yield: 1.4%
Maximum Price to Pay for this stock: $40.64
5 year chart:
Why I Like It: Since early 2009 ABC has shown steady growth and as you can see from its chart, recovered from the GFC quite quickly (at least much faster than many other companies who are only now showing profits for investors).
It has a healthy ROE and while the stock price has slowed down in the past few months still looks very good going forward.
While many other drug companies have had declining profits, AmerisourceBergen has remained stable possibly because of its high range of generic drugs. While many argue that increasing supply of generic drugs will lower ABC’s revenue since they cost less to consumers for now they seem to be a good investment (although as with most companies you should still keep watch of their earnings and profitability over the next few years).
GOOG – Google Inc
Sector: Information Technology
Return on Equity: 19.52%
Earnings Growth: 25.9%
Debt/Equity Ratio: 13.24
12 month stock price increase: 6.3%
Dividend Yield: n/a
Maximum Price to Pay for this stock: $469.44
5 year chart:
Why I Like It: Google’s earnings have done very well over the past few quarters and with a strong management team in place looks set to continue its domination of the search engine marketplace and popular paid search advertising (Adwords) program.
While Bing (Microsoft) is gaining market share, Google still remains the technology leader and most used search engine (70% of the market from last reports) worldwide.
Over the past year Google has been experimenting with personalised search results and other aspects of its business such as moving into the Android market but its paid advertising program still accounts for 90% of its revenue.
Even though it’s currently trading at above what I think is a fair price (keep an eye on it to see if it pulls back slightly and hits the max price), it’s a good long term investment.
Now the book isn’t JUST a reference guide (although that’s where I feel people will get the most value from it).
It will also give you tips on
- how many companies you should own depending on how much money you have to invest,
- the best mix to get a good diversified portfolio,
- sort the companies into lists such as the ones paying the highest dividend yield and more.
- the prices you should pay for each company (so you get a fair value and don’t over pay).
All in all I think it’s going to be pretty helpful.
I aim to have it ready in about 10 or 11 days.
P.S. I might be a bit quiet on this blog for the next 11 days until it’s finished and ready to go live so that I can put my effort into making it the best it can be.