Conservative-Strategy

A stock is purchased if:
     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.

Goal:
The goal of this portfolio is to significantly beat the performance of the S&P 500 each year.

Theory:
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.

Stocks:
Most purchases will come from the tables shown on the Stocks To Watch pages.

Funds:
Borrowed funds (margin) will NOT be used.