Edward W. Ryan - The Worlds Simplest Stock Picking Strategy: How to make money investing in the companies in your life

The Worlds Simplest Stock Picking Strategy

How to make money investing in the companies in your life

Edward W. Ryan

Contents

Disclosure

This material contains the current opinions of the author but not necessarily those of his employer and such opinions are subject to change without notice. This publication has been distributed for educational purposes only and should not be considered as investment advice or a recommendation of any particular security or investment product. The strategies outlined in this book may not be suitable for every individual, are not guaranteed or warranted to produce any particular results and does not contain information necessary to make investment decisions. [Consult your financial adviser or an investment professional to discuss making specific in vestments.]

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The author may or may not own the securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held.

Nothing contained herein is intended to constitute accounting, legal, tax, securities, investment, or other professional advice, not an opinion regarding the appropriateness of any investment, not a solicitation of any type. Readers should be aware that all investments contain risk and may lose value. The information contained herein should not be acted upon without obtaining specific accounting, legal, tax, and investment advice from a licensed p rofessional.

Preface

The Worlds Simplest Stock Picking Strategy

H indsight is 20/20. Today, it is easy to see which companies would have been great investments yesterday.

We often regrettably look back at missed opportunities that now, years later, appear to have been obvious. Many of these incredible companies were right in front of us the whole time as we used their products or services, yet never considered them as i nvestments.

What if you could change that? What if you had a framework for investing that enabled you to catch the next g reat stocks?

That is what the Worlds Simplest Stock Picking Strategy provides. It is a simple and fun process designed to help you invest in and profit from the companies you interact with and admire.

The process is centered around your competitive advantage as an investor, which is your intimate knowledge of the products and services that are part of your life. The Worlds Simplest Stock Picking Strategy will guide you step-by-step in determining which companies in your life to invest in, how much capital should be allocated to each investment, and when you should buy, sell, add, or reduc e positions.

The process is consistent with sound investing principles, yet it requires no investment or financial experience to execute. No matter your age, education, or background, you are just as capable of executing this investment strategy as a nyone else.

The easy-to-follow steps described in this book have the ability to transform you from an everyday consumer making decisions about how to spend your time and money, into a disciplined investor with a concentrated portfolio of qual ity stocks.

The Worlds Simplest Stock Picking Strategy is for everyone

I developed this investment strategy for myself because I was tired of missing out on great stocks that in hindsight seemed to have been so obvious.

While working professionally in proprietary trading and equity research, and doing my own financial analysis of companies, I was missing out on profitable stock moves in companies that were right in front of meAmazon, Facebook, Microsoft, etc.companies that I was using every day in my per sonal life.

To put an end to the missing out, and to start profiting from these incredible companies all around me, I developed this stock strategy and fine-tuned it over a decade of contemplation and trial and error. My goal was to create a framework that would be rooted in soun d investing principles yet was easy to execute and relied on c ommon sense.

I believe those goals have been achieved in what I now call the Worlds Simplest Stock Picki ng Strategy.

I have been using this investment strategy successfully for several years with my own money, and I believe strongly i n its merit.

I decided to articulate the strategy in an easy-to-follow book because of the countless questions I have received from friends and family members about how to invest.

These inquiries have been about investing in individual stocks, never about general investing principles, financial analysis, or exchange traded funds (ETFs). My friends and family are representative of the larger trend of people who are becoming interested in trying their hand at stock picking, but who have no professional experience or knowledge.

This book is a practical framework that anyone with an interest in stock investing can follow.

Here are a few examples of people in my life, from varying backgrounds, who are benefiting from the strategy I shared with them.

• My 19-year-old godson told me that he has become interested in investing. He created a Robinhood account and has been buying and selling stocks based on news headlines. He is likely to ultimately lose money trading this way, but he is not interested in simply buying ETFs. He has seen big moves in the stocks of companies he is familiar with and wants to get involved. This book is for him.
• My friend who works in software programming recently told me that after having worked and saved money for over 13 years, she is just now getting interested in investing. I asked her if shes investing in ETFs or individual stocks, and she replied, I want to do a little of both, but I dont really know what I am doing. This book is for her.
• My brother who owns a food trailer at a popular bar in Austin, Texas, told me that everyone at the bar talks about stocks now. He said most of his patrons get their investment ideas from internet personalities, and most of them have no meaningful investing game plan whatsoever. This book is for them.
• My mother mentioned that she opened a brokerage account to play around with and that she bought some Lululemon (LULU) stock because she likes their clothes and thinks theyre going to keep doing well. She then added, What else do you think I should buy? This book is for her.
• My friend who holds an MBA and has been a devoted investor for over a decadehe spends time analyzing company financialsremarked, I feel like an idiot, Ive been doing work trying to find stocks with low P/E ratios and high dividend yields for the last ten years, and Im losing money in this market while people who just bought the obvious stocks have made so much. This book is for him.
• My wife, who has never had an interest in investing but is an extremely discerning consumer with an eye for quality, recently told me that because of this strategy she thinks she could be a great investor. I dont disagree.

If any of these people remind you of yourself, then the Worlds Simplest Stock Picking Strategy is for you.

The Layout of the Book

My intention in writing this book was to make understanding and executing my stock picking strategy as easy a s possible.

This is not meant to be a dry, academic read; rather, it is an actionable guide. The layout of the book reflect s this aim.

The first two chapters introduce the stock strategy and discuss the investing philosophy sup porting it.