What can Sim?
may Slim is an abbreviation for investment in investment in the stock market formulated by William J. O'Neil, the founder of the popular newspaper on the stock market Investor's Business Daily . Each letter means an element that the company should own before it is considered a wise investment. The CAN letters are: "C", which is worth a quarterly profit per share that has increased sharply from the previous year; "A" for annual incomes compared to the increase in the last five years; And "n" for new factors in society, as recently introduced products or managerial teams. Slim presents the following: "S" means an investment environment where there is a small offer of shares of the company, but a great demand for it; "L" means that the shares considered are the leader in its particular sector; “I” refers to shares with institutional sponsorship by large investors who show above -average market performance; And "M" is equal to actions that have a positive market regime for growth.
Themethod of investing CAN Slim is known as investing in a value where it focuses on the real value of the company on the market, as well as how society is perceived by competitors and industry analysts. This is a form of basic analysis, but this process also uses some of the approach of technical analysis to invest, which relies more on statistics and mathematical models to predict the direction of shares. Strategies of values or basic investments are also long -term and more precisely focused on very large stocks, such as industrial Dow Jones averages on NYSE. Technical analysts tend to focus on investment strategies on more volatile market segments, such as technological stocks and companies with less capitalization.
Investment strategies such as O'Neil's have been made for US business environment, especially for New Yorkburz Securities (NYSE), although financial theories can be based on almost any modern environment onstock market. The investment in the stock market is an overall complicated enterprise and many investors seek shortcuts such as a form of mnemonics or trigger memory that leads decision -making when using a number of financial theories. Knowledge of theory is one of the reasons why the principles can be popular and O'Neill continues to write the best -selling books based on his thoughts and lectures around the US to sold out places.
While O'Neil earned millions of dollars using its CAN Slim methodology over the years, including increasing its original portfolio 20 times in 26 months using access is not a guarantee of success. In 1971 he first published elements of the concept in his book, model Book of Greatest Acsonal Market Conform . Other elements of the Slim Strategy CAN can be traced to the earlier writing of O'Neil in the 1950s, and the trade environment of international finances has changed significantly since then.