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The Guide To Worry Free Investing Vectorvest

The document provides guidelines for worry-free investing by minimizing, spreading, and limiting risk. It recommends minimizing risk by buying stocks rated high for relative safety that have consistent growth rates exceeding inflation and interest rates. It suggests spreading risk by diversifying among at least 10 stocks in 10 different industries. And it advises limiting risk to 10% of the portfolio value by using stop-sell prices 10% below the current market price and diversifying investments over time.

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586 views10 pages

The Guide To Worry Free Investing Vectorvest

The document provides guidelines for worry-free investing by minimizing, spreading, and limiting risk. It recommends minimizing risk by buying stocks rated high for relative safety that have consistent growth rates exceeding inflation and interest rates. It suggests spreading risk by diversifying among at least 10 stocks in 10 different industries. And it advises limiting risk to 10% of the portfolio value by using stop-sell prices 10% below the current market price and diversifying investments over time.

Uploaded by

Ddasfda Dsafasdf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The

guide
to
worry-free
investing
by Dr. Bart A. DiLiddo
THE VECTORVEST GUIDE TO WORRY-FREE INVESTING
You don’t have to take major risks
to make a lot of money in the
market.
Does that sound impossible?
Not if you learn to minimize
downside risk, spread it, and limit it.

2
Minimize Risk
The way to minimize risk is to buy high Relative Safety (RS), “Buy” (B) rated stocks.
These stocks are already going up in price and have well established track records of
consistent, predictable growth. They do well in good times and bad.
You can combine the safety of investing with the power of compound interest by buying high
RS stocks with growth rates greater than the sum of current inflation and interest rates.
This is the way to accumulate real wealth.

3
Spread Risk
The way to spread risk is to diversify, diversify, diversify.
Diversity in what you buy and when you buy.
Buy at least 10 different stocks in
10 different industries. In this way, if
something happens to one stock or
one industry, your portfolio will not
be mortally wounded.

4
Limit Risk
The way to limit risk is to use “Stop-Sell” Prices.
If your average Stop-Sell Price is 10% below the current market price of your stocks, your
total portfolio risk is only 10%. If you have at least 10 stocks in your portfolio, your risk on
any single stock is only 1% of your portfolio.
The best thing about using a Stop-Sell Price is that once the Stop rises above your purchase
price, you should never lose money on that stock.
How many investments can you think of that have the upside potential
of stocks with such limited risk exposure?

5
The A B C’s of
Worry-Free
Investing

6
A. Buy High Relative Safety “B” rated stocks
99 Buy stocks with an RS greater than 1.00,
the higher the better!
99 Favor “Buy” rated stocks with the highest
combinations Value-Safety-Timing (VST).
99 Favor stocks with growth rates greater
than the sum of current inflation and
interest rates (RV greater than 1.00).

7
B. Diversify in What and When You Buy.
99 Do not put more than 10% of your
funds into any single stock.
99 Do not own more than two stocks in
the same industry.
99 Do not plunge into the market all at
once. Spread your investments over
time.

8
C. Use Stop-Sell Prices.
99 A suggested Stop-Sell Price is given for every
stock, every day.
99 Once the Stop-Sell Price has gone above your
purchase price, you should not lose money in
that stock.
99 Sell low RS, “S” rated stocks. (If the RS
rating is above 1.00, you may consider
“dollar averaging” the stock once the
recommendation returns to at least an “H”).
Return to Step A.

9
VectorVest is comprised of reports embodying a unique system of stock analysis. All the contents
and recommendations are based on data and sources believed to be reliable, but accuracy
and completeness cannot be guaranteed. Users should be aware of the risks involved in stock
investments. It should not be assumed that future results will be profitable or will equal past
performance, real, indicated or implied. VectorVest and/or its principals may purchase or sell any
of the securities cited herein. VectorVest and the logo style, geometric design area, individually
and collectively, service marks licensed by VectorVest, Inc.

VectorVest, Inc., 20472 Chartwell Center Drive, Ste D,


Cornelius, NC 28031, 1-888-658-7638.

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