Purple Chips E-Book

John Schwinghamer

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 140

Veröffentlichungsjahr: 2012

Beschreibung

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.

Leseprobe

Table of Contents

Title Page

Copyright

Dedication

Acknowledgments

Introduction

My Background

Chapter 1: The Psychology of Investing

Singles and Doubles Are Better

Tune Out the Noise

EPS Explained

Chapter 2: Purple Chips versus Blue Chips

Finding the Purple Chips

Purple Chips versus Common Blue Chips

Dividends, or Getting Paid While You Wait

Keeping It Simple: The Purple Chips Model versus Ratio Analysis

Chapter 3: Understanding and Seeing Valuation

The Normal Curve: An Odds-Based Approach

The Shifting EPS Line: A Quick Gauge of Value

Valuation Reset

Chapter 4: What Else You Need to Know

Earnings Trend

Value Traps

Valuation Trend

The P/E Ratio and Growth

How to Build a Portfolio of Purple Chips

Stop Loss Orders

No More Anchoring

Market Crashes

Do It Yourself

Chapter 5: When to Buy and Sell

Step 1: Draw the EPS Line

Step 2: Set the Buy and Sell Targets

Step 3: Adjust the Buy and Sell Targets

Chapter 6: Practice Case Studies

Case Study: Abbott Labs

Case Study: AutoZone

Case Study: Johnson & Johnson

Case Study: General Dynamics

Chapter 7: Purple Chips Summarized

Endnotes

Index

About the Author

Copyright © 2012 John Schwinghamer

All rights reserved. No part of this work covered by the copyright herein may be reproduced or used in any form or by any means—graphic, electronic or mechanical without the prior written permission of the publisher. Any request for photocopying, recording, taping or information storage and retrieval systems of any part of this book shall be directed in writing to The Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright license, visit www.accesscopyright.ca or call toll free 1–800–893–5777.

Care has been taken to trace ownership of copyright material contained in this book. The publisher will gladly receive any information that will enable them to rectify any reference or credit line in subsequent editions.

DISCLAIMER: The content of this book is based on historical information provided by reliable sources that were believed to be accurate at the time of writing in August 2011, but cannot be guaranteed. This book is not intended to address the reader’s particular investment requirements, nor does it constitute any form of investment advice or recommendation by the author, the author’s employer or the publisher. Investing in the stock market is risky and can cause substantial loss. Before investing, readers should consult a certified professional and determine what kinds of investments are suitable for them. Some, but not all, of the transactions that are mentioned throughout this book were initiated by the author. There is no guarantee that the future performance of this approach will resemble past performance, nor can this book be construed as an offer to solicit funds from investors.

Library and Archives Canada Cataloguing in Publication Data

Schwinghamer, John

Purple chips : winning in the stock market with the very best of the blue chip stocks / John Schwinghamer.

Includes index.

ISBN 978-11182-944-99

1. Blue-chip stocks.  2. Investment analysis.

3. Corporations–Evaluation.  4. Investments–Psychological aspects.  I. Title.

HG4661.S38 2012    332.63’22    C2012-901757-4

ISBN 978-1-118-29449-9 (pbk); 978–1–118-30009-1 (ebk); 978–1–118-30013-8 (ebk); 978–1–118-30014-5 (ebk)

Production Credits

Cover design and image: Ian Koo

Interior design: Adrian So

John Wiley & Sons Canada, Ltd.

6045 Freemont Blvd.

Mississauga, Ontario

L5R 4J3

Acknowledgments

I am grateful to the following people for their assistance in developing Purple Chips:

David Schwinghamer for his early guidance and editing skills; Raymond Kenworthy for all his research and analysis; Marilyn Biderman for sharing her vast knowledge of the publishing business; Mark Benthin for adding value; and Andre Bourret, Joseph Mendel and David Arthurs, for off ering me their wisdom and support.

Introduction

With so many books on investing, you would be right to ask what could possibly make this one any better than what is already out there.

The answer is simple. I believe that if you take the time to read through the arguments that I put forward in this book, you will learn a simpler way to identify top-quality investments at good prices. If you follow the unique yet sensible approach that I propose in this book, your level of confidence will rise as you see yourself invest successfully, and with less risk, more often. This book will show you how to identify great companies based on a simple visual examination of their financial health. You will learn to invest with a well-defined plan that includes when to buy, when to sell and when to take a loss.