"To have a clear concept of the differences between market price and underlying value and should firmly base his stock selection on the margin-of-saftey principle. The Investor cannot enter the arena of the stock market with any real hope of success unless he is armed with mental weapons that distinguish him in kind-not in fancied superior degree-from the trading public." (Benjamin Graham)
"Will you be known for fishing the 3000 pound marlin or 14 trout" (Sean Parker)
Point is, no one cares as much about the little fish, literally or metaphorically. You are better off going after big things, even with the chance of coming up empty, than trying to trumpet your success with tiny triumphs.
The Enterprising Investor
The determining trait of the enterprising investor is his willingness to devote time and care to the selection of securities that are both sound and more attractive than the average. Over many decades, an enterprising investor of this sort could expect a worthwhile reward for his extra skill and effort in the form of a better average return than that realized by the passive investor.” Ben Graham in “The Intelligent Investor”, 1949.
The Defensive Investor
A simple portfolio policy-the purchase of bonds, plus a diversified list of leading common stocks- which any investor can carry out with a little expert assistance. The lay investor can achieve a creditable, if unspectacular, result with a minimum of effort and capability... since anyone-by just buying and holding a representative list --can equal the performance of the market averages, it would seem a comparatively simple matter to 'beat the averages.'
1) Formula Timing
2) Growth Stock Approach
3) Bargain Issues
4) Technical Analysis
5) Law of Mind ( Training your Subconcious)
Suppose some one asked you to name the master secret of the ages. what would you answer? Atomic energy? Interplanetary travel? Black holes? No, it is not any of these. Then what is this master secret? where can i find it? How can it be un...derstood and put into action?
The answer is extraordinarily simple. This secret is the marvelous, mirical-working power found in your own subconscious mind. This is the last place most people would look for it, which is the reason so few ever find it."
BOARD UNDER CONSTRUCTION
Our practical definition is as follows: Once a company trades for $10 per share or more and trades on NASDAQ's 2 higher tiers, AME, NYSE or OTCQX we do not call it a small company.
Within our limited definition of "small companies" there still remain very large differences relevant to investing.
For example, if a company is on the OTCBB it is required to be a reporting company -- that is, is submitting to the SEC its audited quarterly and yearly data plus all information important for investors . Therefore you can access its stock performance and financial data at servers such as Yahoo, Hoovers, Market Guide and EDGAR -- right along side General Motors and Microsoft! SEC-reporting companies are required to comply with strict regulations relating to disclosure and accuracy. This includes the reporting regulations in Sarbanes-Oxley. An experienced investor has a chance to access the data necessary to decide if this company is a good investment. He also has reasonable expectation that the data is accurate. Almost all these companies are also trading on the OTCQB run by Pink OTC Markets, the platform which handles most of the trades in these stocks.
If a company is on the OTCQX it, too, is required to be a reporting company; however it reports to Pink OTC Markets rather than the SEC. Pink OTC Markets runs this premiium quotaion, trading, and disclosure service and makes the information available to the public. OTCQX companies do not need to comply with all the SEC disclosure regulations and can avoid the cost of complying with Sarbanes-Oxley, a huge expense for a small company. However, the OTCQX company must follow generally accepted auditing principles (GAAP) and have regular audits. Moreover, it must have an independent Designated Advisor for Disclosure (DAD), a professional "gatekeeper" for secondary market disclosure. The OTCQX is patterned after the London Stock Exchange's successful AIM system for small companies.
If a company is on the Pink Sheets but not on the OTCQX, and is not SEC reporting, the level of information available about the company determines the Pink Sheets &quo;Tier" for the company. These levels are: Current, Limited or No public disclosure. Although financial figures for companies in the OTCQX and OTCQB/OTCBB must be audited, those for companies on the Current Information tier may or may not be audited. For US companies, usually they are not, though they must be prepared in accordance with generally accepted accounting principles (GAAP). Foreign companies are another matter. They can join the Current Information tier simply by reporting to their own country's version of the SEC, thereby fulfilling requirements which can be just as stringent as those in the US. In addition, some of these companies are not at all small!
In addition to the above tiers, there is one more Pink Sheets designation you should be aware of, the "Caveat Emptor" symbolized at the OTC Markets Website by a skull and crossbones. A company earns this designation when their stock is being actively promoted in spite of the fact that accurate, current financials are not publicly available on the Web.