Purple Chips - Winning in the Stock Market With the Very Best of the Blue Chip Stocks

Informationen zum Autor In seven succinct chapters that include numerous examples, graphs, and charts, author John Schwinghamer presents a simple and effective way to succeed in investing in the stock market. John Schwinghamer is a portfolio manager with a major bank in Montreal. He started his career in 1984 as floor trader at the Montreal Exchange and then became a stock broker and an expert in derivatives. John has also held management and partnership positions in several investment firms, and he currently manages the portfolios of a select group of clients. He has a B.Comm. in finance from Concordia University, as well as extensive securities industry accreditation. He is a lead judge for the International Case Competition at the John Molson School of Business at his alma mater. He has also been an expert witness in derivatives court cases. John lives in Montreal with his artist wife and has three children. Klappentext How to make money investing in high-quality, low-risk stocks Purple Chips presents a unique stock-picking method based on identifying great companies based on simple visual examinations of financial health, applying three basic criteria to distinguish high-performing purple chip stocks from mere blue chip investments. The book also delves into the psychology of investing, arguing that most investors are better suited to winning small gains often and losing occasionally, rather than taking small losses often and winning big from time to time. In seven succinct chapters that feature plenty of helpful examples, graphs, and charts, author John Schwinghamer presents a simple and effective way to win with stocks. For more information, please visit www.PurpleChips.com. Zusammenfassung How to make money investing in high-quality, low-risk stocks Purple Chips presents a unique stock-picking method based on identifying great companies based on simple visual examinations of financial health, applying three basic criteria to distinguish high-performing purple chip stocks from mere blue chip investments. Inhaltsverzeichnis Acknowledgments xi Introduction 1 My Background 3 Chapter 1: The Psychology of Investing 7 Singles and Doubles Are Better 7 Tune Out the Noise 10 EPS Explained 11 Chapter 2: Purple Chips versus Blue Chips 17 Finding the Purple Chips 18 Minimum Seven Years of Positive and Growing EPS 18 Smooth and Predictable Growth in EPS 19 Minimum Market Capitalization of $1 Billion 23 Purple Chips versus Common Blue Chips 24 Dilution is a Value Killer 28 Dividends, or Getting Paid While You Wait 31 Purple Chips Make Money for Investors 31 Keeping It Simple: The Purple Chips Model versus Ratio Analysis 35 Con Edison versus Entergy 36 Wendy's versus McDonald's 37 General Mills versus Kraft Foods 39 Google versus Yahoo! 41 Chapter 3: Understanding and Seeing Valuation 43 The Normal Curve: An Odds-Based Approach 43 The Shifting EPS Line: A Quick Gauge of Value 45 Valuation Reset 49 Chapter 4: What Else You Need to Know 55 Earnings Trend 55 Value Traps 59 Valuation Trend 62 The P/E Ratio and Growth 69 How to Build a Portfolio of Purple Chips 71 Diversification 71 Position Size 72 Stop Loss Orders 73 No More Anchoring 74 Market Crashes 76 Do It Yourself 76 Chapter 5: When to Buy and Sell 79 Step 1: Draw the EPS Line 79 Step 2: Set the Buy and Sell Targets 82 Step 3: Adjust the Buy and Sell Targets 83 Buying Checklist 84 Selling Checklist 84 Chapter 6: Practice Case Studies 91 Case Study: Abbott Labs 93 Summary 106 Case Study: AutoZone 108 Summary 117 Case Stu...

List of contents

Acknowledgments xi
 
Introduction 1
 
My Background 3
 
Chapter 1: The Psychology of Investing 7
 
Singles and Doubles Are Better 7
 
Tune Out the Noise 10
 
EPS Explained 11
 
Chapter 2: Purple Chips versus Blue Chips 17
 
Finding the Purple Chips 18
 
Minimum Seven Years of Positive and Growing EPS 18
 
Smooth and Predictable Growth in EPS 19
 
Minimum Market Capitalization of $1 Billion 23
 
Purple Chips versus Common Blue Chips 24
 
Dilution Is a Value Killer 28
 
Dividends, or Getting Paid While You Wait 31
 
Purple Chips Make Money for Investors 31
 
Keeping It Simple: Th e Purple Chips Model versus Ratio Analysis 35
 
Con Edison versus Entergy 36
 
Wendy's versus McDonald's 37
 
General Mills versus Kraft Foods 39
 
Google versus Yahoo! 41
 
Chapter 3: Understanding and Seeing Valuation 43
 
Th e Normal Curve: An Odds-Based Approach 43
 
Th e Shift ing EPS Line: A Quick Gauge of Value 45
 
Valuation Reset 49
 
Chapter 4: What Else You Need to Know 55
 
Earnings Trend 55
 
Value Traps 59
 
Valuation Trend 62
 
Th e P/E Ratio and Growth 69
 
How to Build a Portfolio of Purple Chips 71
 
Diversification 71
 
Position Size 72
 
Stop Loss Orders 73
 
No More Anchoring 74
 
Market Crashes 76
 
Do It Yourself 76
 
Chapter 5: When to Buy and Sell 79
 
Step 1: Draw the EPS Line 79
 
Step 2: Set the Buy and Sell Targets 82
 
Step 3: Adjust the Buy and Sell Targets 83
 
Buying Checklist 84
 
Selling Checklist 84
 
Chapter 6: Practice Case Studies 91
 
Case Study: Abbott Labs 93
 
Summary 106
 
Case Study: AutoZone 108
 
Summary 117
 
Case Study: Johnson & Johnson 118
 
Summary 127
 
Case Study: General Dynamics 129
 
Summary 136
 
Chapter 7: Purple Chips Summarized 137
 
Endnotes 141
 
Index 143
 
About the Author 149

Product details

• Authors: John Schwinghamer, Schwinghamer John
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 01.06.2012
• EAN: 9781118294499
• ISBN: 978-1-118-29449-9
• No. of pages: 176
• Subjects: Guides > Law, job, finance > Money, bank, stock market; Social sciences, law, business > Business > Business administration; Kapitalanlage, Finance & Investments, Finanz- u. Anlagewesen, Kapitalanlagen u. Wertpapiere, Investments & Securities