company is a cash-generating, industry-dominating, wealth-creating powerhouse — what we call a Rule Maker.
Directions:
We’ve identified 11 general attributes of Rule-Making companies. Part 1 covers five qualitative aspects of a business. For each of these, the scoring is simple — 1 point if the attribute is met, 0 points if it’s not. Part 2 covers six financial criteria. Since these are more objective, each is worth 2 points if met, 0 points if not. Altogether, that’s 17 possible points. Got it? If so, pick a company to analyze and let’s get started!
*Note* Rule Maker analysis is primarily for companies with at least $1 Billion in annual sales.
Part 1: Evaluating the Biz—Answer honestly! It’s either 100% yes, or else no.
1) Dominant Brand — Is the company the standout category king within its industry?
2) Repeat Purchases — Do customers return for purchase at least once a month?
3) Convenience — Within its industry, is the company’s product/service accessibility and convenience the best?
4) Expanding Possibilities — Can you answer “yes” to the following two questions?
a) Do your friends know about and use the product/service?
b) Is worldwide expansion believable for their stuff?
5) Your Familiarity & Interest — Are you a user of the company’s products or at least very familiar with them?
Part 2: Company Financials—Fill in the cells outlined in blue. The spreadsheet will crunch the numbers.
*Important Note* — When evaluating quarterly (10-Q) results, use the year-to-date income statement data.
For example, if a company is 3/4 of the way through its fiscal year, use the full 9 months of info.
Investing in highly volatile bitcoins and other cryptocurrencies is risky business. These currencies are all electronic or virtual in nature, and thus have no physical presence. They don’t even have intrinsic value. However, no one can deny that right now these cryptocurrencies are extremely valuable and those who invested in the early days, and held on to their investments, are living the high life now as multi-millionaires, and even billionaires!
If you want to be like these wise investors sometime in the future, then follow these 4 investing strategies to increase your chances for success.
1 – Prepare For Volatility
It’s basically a given for cryptocurrencies that they are going to be extremely volatile. One minute the price is sitting at 5 digits, and the next it’s at 4 or even 3 digits! It’s absolutely unpredictable, and if you don’t take its volatility seriously, you could get in a lot of trouble. You could panic and sell off your crypto so you can minimize your loss.
However, if you’ve braced yourself for scenarios like this, then you’d probably just shut down your computer, or turn off your TV, and lie down and sleep off your doubts. Tomorrow is a different day, the price could go back up, and all will be fine with the world. Being prepared for volatility is tough, but it’s definitely doable.
2 – Proceed With Caution
Do your research before you start investing in bitcoins and other cryptocurrencies. When you’re dealing with hard-earned money, you don’t want to lose everything in one day. You’re investing to make a profit sometime in the future. Don’t go all in without studying what you’re putting your money into.
3 – Diversify Your Portfolio
Don’t put all your eggs in one basket, so to speak. Don’t just invest in bitcoins. If possible, invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds. At least if bitcoin prices drop, then you’re not going to be totally in the red. Your other investments will help keep you afloat.
4 – Store Your Virtual Coins In Cold Wallets
Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet. Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet. You can keep small amounts in your online wallets, but the bulk of your investments should be offline.
