INVESTMENT PHILOSOPHY

I. Investment Philosophy

a. Investor Assumptions

i. Risk tolerance
ii. Time horizon
iii. Financial goals/purpose

b. Market Status and Assumptions- information about the market

i. Current level of the S&P500 at today? Is it a “bull” or “bear” market (Author 2)?
ii. What are experts/media saying?
iii. What are the factors that will affect the market in the short-term?
iv. Forecast for next 3 months and time horizon

c. Investment Strategy- plan based on investor and market information
i. Types of stocks you will invest in?

1. Blue-chip
2. Growth
3. Value
4. Large/Med/Small Capitalization
   ii. How will you split up your investment?
5. Diversification – 15 to 20 stocks
6. By type, risk, or industry
   iii. What industries will you focus on and why?
7. Select 8 to 10 and explain why
8. Use Yahoo Finance Industry Center
   a. https://finance.yahoo.com/industries/
   iv. When will you sell and/or buy more?
9. Could be a set percentage increase or decrease.
10. Saving some cash for later?
    v. WATCHLIST – list 30 stocks you want to watch in a table that should include columns for stock name, ticker symbol, price, industry, beta INCLUDE IN APPENDIX
11. Use excel spreadsheet to list out stocks
    vi. INVESTMENT PHILOSOPHY – 1 paragraph description summarizing how you want your funds invested in the stock market. Imagine that 1 paragraph is all you can give to a financial planner to invest on your behalf.