Originally Posted by
hockeypilot44
That seems like good investing. Buy a stock and sell it at a higher price. Picking a good stock is key. Does this method tell you what to look for in a good stock?
Sigh...
That's not the objective of this method. Yes, it is designed so that you never sell stock for a loss. But it is NOT designed to make much on the sale of the stock when you do sell it. You do generally make
some capital appreciation. But the vast majority of the return comes from the cash flow that is generated
while you own the stock. Have I mentioned that is the objective?
Yes, the method screens for stocks that are good candidates for generating cash flow and are not likely to go bankrupt. There is no attempt being made to predict whether a stock is going to go up or down over any particular time frame.
Maybe we need to get our own thread to discuss this over in the "Money" section?