19/04/23 NAS 1

Introduction to Zulu - 1• Why I joined our successful Club• Jim Slater’s “Zulu Principle” in our Library

http://www.cccic.co.uk or at http://www.amazon.co.uk

• Slater made two major innovations: PEG and REFS- Really Essential Financial Statistics

• PEG=(p/e)/growth, awarded in REFS if four, tough criteria are met

• The PEG in http://www.digitallook.co.uk etc is simpler and is not so useful

• Just investing in shares with PEG<0.7 probably very profitable! http://refsonline.hemscott.com/scripts/login.dll/login [User name and Password available from Chris Rose]

19/04/23 NAS 2

Beyond PEG• REFS is an industry standard, searchable database

of many shares that does most of the sums for you! A quick look at Fenner

• Use REFS to select shares with low PEG yields growth shares at a good price with relatively low risk: analyse the financials first

• Cash flow, relative strength, management, competitive advantage and other criteria improve our success: often better than fund managers!

• Adding these filters helps: CCCIC Growth filter• You’re lucky! You have online access to REFS

19/04/23 NAS 3

After the hard facts, we:

• Make more subjective assessments• Local market research, members’ expertise,

Bulletin Boards e.g., http://www.iii.co.uk newspapers and magazines

• System works! Our unit price at an all time high: portfolio at: http://www.proshareclubs.co.uk

• Enjoy being a “share analyst” yourself!• Next time: a closer look at REFS