12 Rules of Simply Investing

Earn More. Save Your Time. Reduce Your Risk.

Here are the 12 Rules of Simply Investing, the same rules I have used over the last 20+ years to invest successfully.

These rules are designed to minimize your risk and maximize your gains for the long-term. These rules make investing easy and simple to implement. The goal is for you to build a resilient stock portfolio that will provide you with growing passive income, regardless of stock prices and the economy.

  1. Do you understand the product or service offered by the company?
  2. Will people still be using this product or service in 20 years?
  3. Does the company have a low-cost durable (lasting) competitive advantage?
  4. Is the company recession proof?
  5. Has the company had consistent earnings growth? The EPS growth must be at least 8%
  6. Has the company had consistent dividend growth? The dividend growth must be at least 8%
  7. Does the company have a low payout ratio? Payout ratio must be 75% or less (and above 0).
  8. Does the company have low debt? Debt must be 70% or less (and above 0).
  9. Does the company have a good credit rating? Company must have a minimum S&P Credit Rating of “BBB+”.
  10. Does the company actively buy back its shares?
  11.  Is the stock undervalued?
    a. The P/E Ratio must be 25 or below (and above 0).
    b. Is the current dividend yield higher than the average dividend yield?
    c. The P/B Ratio should be 3 or less (and above 0).
  12. Keep your emotions out of investing.
    A reminder to keep emotion out of the selection process. Discipline and patience are the keys to successful investing.

Are you looking to get started with investing? In the Simply Investing online Course, I cover the 12 Rules in greater detail and show you how to obtain the values you need in order to apply the 12 Rules, and become a successful investor.

No time to take my online course? Then the Simply Investing Report is for you. In the Report I apply the 12 Rules to over 250 stocks each month, with all the values calculated for you.

The 12 Rules of Simply Investing are time tested and designed to keep you from making mistakes. Investing really can be this simple!

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