Conservative Portfolio Strategy
Last update: January 24, 1999
|A stock is purchased
1) it has a market capitalization of more than $1 billion.
2) it has a relatively smooth, upward-sloping 10-month moving average.
3) it has consistent revenue and earnings growth
4) its PE ratio is less than three times its three-year EPS growth rate
5) its three-year EPS growth rate is greater than 10%
6) its three-year annualized return is greater than 30%
A stock is sold if:
1) it encounters severe fundamental problems.
2) it trades 30% or more above its 10-month moving average.
3) another stock looks more compelling.
This portfolio will NOT include short positions.
The goal of this portfolio is to significantly beat the performance of the S&P 500 each year.
By focusing all purchases on non-volatile, blue-chip companies, the portfolio's gains will match those of the S&P 500 in an up market and the portfolio's losses will be less than those of S&P 500 in a down market.
Most purchases will come from the tables shown on the Stocks To Watch pages.
Borrowed funds (margin) will NOT be used.
© 1998 VTO Capital Management. All rights reserved.