INVESTING SIMPLIFIED

Mission:

Make Everyone’s Future More Secure By Teaching Them How

to Get Their Money Working Hard for Them

By Having the Best Companies Working For Them Through

Owning Shares in Those Companies

Alpesh B Patel OBE

Why Do It?

10k Initial Capital

500 add monthly

20% pa growth

RisksYou Buy Too Many/Few Stocks

You Buy Bad Ones

You Need the Money Sooner

You Don’t Realise the Risk

You’re Taking

You Give It To A Fund Manager

Thinking They’ll Make More of

Your Money

RisksYou Pick a Stock That Does

Poorly

You Try to Time the Market and

Get It Wrong

Outline: How Do You Buy and Sell Stocks?

Step 1.

Finding a Good, Safe Broker

Step 2.

How To Divide Your Money

Step 3.

Knowing What To Buy

Step 4.

When to Sell

Step 5.

Monitoring

Step 1: Finding a Broker

Key Things To Consider

• Simple to Use

• Regulated

• Investing not Trading

• Global Stocks not Just Funds

• ISA/SIPP ie Tax Free Funds

Opening a

Broker Account

Simple as a Bank Account

It’s Simple To Buy or Sell

Well Ranked Ones

◦ See Which You Like The Usability Of.

Outline: How Do You Buy and Sell Stocks?

Step 1.

Finding a Good, Safe Broker

Step 2.

How To Divide Your Money

Step 3.

Knowing What To Buy

Step 4.

When to Sell

Step 5.

Monitoring

Step 2: How To

Divide Your

Money

• KISS

• 15 stocks, equally

Outline: How Do You Buy and Sell Stocks?

Step 1.

Finding a Good, Safe Broker

Step 2.

How To Divide Your Money

Step 3.

Knowing What To Buy

Step 4.

When to Sell

Step 5.

Monitoring

Step 3 Knowing What To Buy

Journalist? Bank Analyst? Broker?

Word of Mouth?

Your own Checklist and Screener

Know What To BuyType of Information Pros Cons

Journalist Simple Hit and Miss. Not their

livelihood. Don’t tell you when

to sell. Seductive stories

Broker Simple Hit and Miss. Not their

livelihood. Don’t tell you when

to sell. Conflict of interest.

Fund Manager It’s their job Hit and Miss. Don’t tell you

when to sell

Bank eg Goldman Sachs Can move market Hard to find.

Word of Mouth Simple Dangerous.

Gurus eg Buffett Simple Hard to find. Other reasons

for holdings

How to Find Stocks YourselfChecklist (very simple)

UK/US

Valuation – price/earnings

< 30

Growth – Year on Year

Dividends – Yes Please

Cash Flow – Growth

The Dow

Jones is 30

Stocks

Outline: How Do You Buy and Sell Stocks?

Step 1.

Finding a Good, Safe Broker

Step 2.

How To Divide Your Money

Step 3.

Knowing What To Buy

Step 4.

When to Sell

Step 5.

Monitoring

Step 4: When to Sell• KISS

• If it drops 25% from the peak, since you

bought it or after 12 months – whichever

comes first

• Total Risk per Stock? (100/15) x 25% =

1.8%

Outline: How Do You Buy and Sell Stocks?

Step 1.

Finding a Good, Safe Broker

Step 2.

How To Divide Your Money

Step 3.

Knowing What To Buy

Step 4.

When to Sell

Step 5.

Monitoring

Monitoring Tools

• Google Finance

• Yahoo Finance

• The Broker You Used to Buy Through

MORE FREE TOOLS!

WWW.INVESTING-CHAMPIONS.COM

WWW.ALPESHPATEL.COM