Tips on How To Invest

Equities/Stocks:
1. Know the the number of shares outstanding. Multiply the number of shares by the price of the shares. The product is the price you are paying for the whole company. Write a paragraph explaining why you want the buy the company at this price.

2.That is what Ben Graham meant by having a margin of safety. You don't try and buy businesses worth $83 million for $80 million. You leave yourself an enormous margin. When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000 pound trucks across it. And that same principle works in investing.

3. Earnings should have doubled in the most recent 10 years.

4. No more than 2 declines in earnings of 5% or more in the past 10 years.

5. Total debt is less than tangible book value.

Bonds: