Investing, My Strategy.

Having covered why I am investing and not going for a tracker and given I have limited free time to investigate companies this entry will outline my strategy.

So far I have invested in a couple of companies. They were pretty much highlighted in articles by at fool and I did a simple look at their finances and brought them. I felt is was important to get get used to buying shares and learn my way around. I first brought some shares last September and have been buying some more every other month since then. It is play ground amounts so the risk to my financial future is quite small.

Having read more on the subject I feel compelled to get a little more into my buying decisions. So my strategy is this. Take all the companies in the FTSE 100 and screen them on some basic parameters, such as increasing eps over a 4 year period, this whittled them down to about 50 companies. I am then going to do follow the advice given in "million dollar portfolio" book to further remove companies from the list. From the remaining I may have to whittle them down further so I am left with only a handful and I am going to use a simple metric to value the companies to decided on what is a good price for the companies left. The one that looks cheapest at the time will get brought, although the buy process will be balanced out so I won't always buy the same share.

Finally I am going to keep my eye on the ball for small cap shares to buy and introduce some of these as and when I find good one.

The amount I invest is going to remain small in order to keep it a fun thing to do and facilitate learning by doing with getting stressed about any loses.

I am not planning on posting that much about investing from now on, being something I expect to play out over the period of years it does not lend itself to regular blog posts. I will update on the topic from time to time.