- Pick a number from 1-9.
- Multiply that number by 3.
- Add 3.
- Multiply by 3 again.
- Your total will be a two-digit number. Add the first and second digits together to find your best approach to investing or financing a privately-owned company. The list follows:
- Buying stocks which have closed at a higher price in 4 of the last five days.
- Only buy stock in companies with a record of increasing dividends.
- Never buy stock in a company if the CEO is getting a divorce.
- Never buy stock in a company if the CEO has only worked for that company.
- Invest in companies having P/Es of less than that of most relevant market measure.
- Finance a company with the greatest amount of debt obtainable.
- Use units of debt and equity to finance an early stage company.
- Use units of equity and warrants to finance an early stage company.
- Royalties are the better way to both invest in and finance privately-owned companies.
- Buy stock in companies spending a lot of money on research.
- Buy stock in companies having both favorable profit margins and growth potential.
- Study companies carefully so that portfolio concentration is warranted.
portfoliodiversification limitation of five percent to reduce risk.
- Invest in companies having consistently increasing per-share earnings.
- Do not invest in companies having excessive debt.
- Invest in companies which are widely held by mutual funds.
- Be careful about buying stock in companies which are highly promotional.
Arthur Lipper, Chairman, British Far East Holdings Ltd.
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