O'Neill's Investing Keys

Physician's Money Digest, September15 2004, Volume 11, Issue 17

Investor's

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William O'Neill, founder of , has long been anadvocate of sensible investing. Some ofhis successful insights on stock tradinginclude buying stocks in companies thatdemonstrate the following qualities:

  • Dominating presence in strong industries
  • Earnings increases of at least 50% and accelerating 3 quarters in a row
  • Sales increases of at least 25% and accelerating per quarter
  • Return on equity of at least 20%
  • Heavy trading volume that occurs at key up times

His financial insights also include selling stocks that demonstrate the following qualities:

  • Price/earnings ratio 130% higher than its first up move
  • Price fallen 8% below your original purchase price
  • Slowing earnings growth for 2 consecutive quarters
  • Advancing too fast, with accelerating volume, to be realistically priced