9 steps for value investing
The first 7 criteria are used to determine if the stock you are investing in is a GREAT BUSINESS that will grow in value over time.
The 8th and 9th criteria are used to determine if the price is right and if it is the BEST TIME to buy the stock.
http://wealthacademyinvestor.com/showarticle.php?showarticleid=61&pid=2&subid=22
Rule of 72
Rule:
“In wanting to know for any percentage, in how many years the capital will be doubled, you bring to mind the rule of 72, which you always divide by the interest, and the result is in how many years it will be doubled. Example: When the interest is 6 percent per year, I say that one divides 72 by 6; obtaining 12, and in 12 years the capital will be doubled.”
In finance, the rule of 72, the rule of 70 and the rule of 69 are methods for estimating an investment's doubling time. The number in the title is divided by the interest percentage per period to obtain the approximate number of periods (usually years) required for doubling. Although scientific calculators and spreadsheet programs have functions to find the accurate doubling time, the rules are useful for mental calculations and when only a basic calculator is available.
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