Jim Slater - The Zulu Principle: Making extraordinary profits from ordinary shares

Companies in the FT-SE 100 Index usually offer the comfort of size and rarely fail completely. These kinds of shares can also be sold much more easily even in bad markets. They are, however, well analysed by the investment community, increasing the difficulty of finding a real bargain. I intend to give you some selective criteria that should improve your investment performance with leading shares in this country. I have also found that my criteria work extremely well in America and most overseas markets.

If you need to read the Glossary please do so now, as I am anxious to show you how to make some money by using an approach that I have named The Zulu Principle. You will not be spending any time on gilts, preference shares, loan stocks and the Japanese market. Instead, you will concentrate upon five different ways of making money by investing in ordinary shares before you finally select one method or perhaps two that suit your temperament.

I first named this approach The Zulu Principle after my wife read a four page article on Zulus in Readers Digest . From that moment onwards she knew more than me about Zulus. If she had then borrowed all the available books on the subject from the local library and read them carefully she would have known more about Zulus than most people in Surrey. If she had decided subsequently to visit South Africa, live for six months in a Zulu kraal and study all the available literature on Zulus at a South African University, she would have become one of the leading authorities in Great Britain and possibly the world. The key point is that the history of Zulus and their habits and customs today is a clearly defined and narrow area of knowledge into which my wife would have invested a disproportionate amount of her time and effort, with the result that she would have become an acknowledged expert. The study of this noble people might not have been profitable, but there are many other very specialised subjects that would have been very rewarding financially.

I now intend to show you how to use The Zulu Principle with your investments. You will achieve your objective, like Montgomery and Napoleon before him, by concentrating your attack.