3. Of the four possible outcomes; high margin, high volume is best.
4. A steadily moving higher and higher left to right stock chart is a good thing. The inverse is not.
5. Inevitably, and by definition, more time is spent holding a losing position than is necessary. Don't be afraid to cut your losses; the financial farmer has a healthy understanding and respect for the risk of ruin.
In summary, I look for boring, dividend paying companies that have a high margin, high volume business with steadily increasing left to right stock charts. I’m not afraid to cut my losses early to help avoid the risk of ruin.
All of these themes are going to be discussed much further in the blog in the future, but I wanted to provide a general overview today to help the reader navigate further posts with the help of a little historical background and context of the Invest Like A Farmer theory.