Practical Stock Selection

by Gustav Graves
(Miami, FL, US)

My method is practical, simple and easy to understand. I follow strong companies who have good, rising dividends and big market caps. When these companies have a crisis, like Citigroup Inc. is having now, for example, I buy a lot of shares. Of course, you don´t know how much the stock is going to fall before recovering but usually if you buy it at 10% less of its average value it's a good price. After this I wait until the stock gets back to its normal value and sell it. If you don't do this with big strong companies it may end bad.