Rule Breakers

"All intelligent investing is value investing."

 - Charlie Munger

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

 - Warren Buffet

Six Signs of a potential Rule Breaker

Sign No. 1

Top dog and first mover in an important emerging industry.

- Top dogs are active, fast-moving market leaders

Sign No. 2

Sustainable advantage gained through business momentum, patent protection, visionary leadership, or inept competitors.

Sign No. 3

Strong past price appreciation

- Sometimes, the best investments appear overvalued.

Sign No. 4

Good management and smart backing

- This is the most important attribut of all

- Might be the most difficult to get right

- Investors should also be prepared to learn about the venture-backers of a young company

- If the very best venture capital firms are behind a company, maybe you should be, too.

Sign No. 5

Strong consumer appeal

- Rule breaker companies provide products or services that improve the quality of peoples' lives.

Sign No. 6

You must find dumented proof that it is overvalued according to the financial media.

- As the recovery matures, the best performers will be high-quality companies with lots of cash, sustainable earnings, and the clout to take market share.

Also another great "formula" is the formula by Warren Buffet to distinguish the difference between a weak and strong company.

I hope these tips and tricks will help!

Happy Trading!