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Kindle Notes & Highlights
Investing is when you don’t know what could go wrong. Speculation is when you know exactly what could go wrong.
http://www.google.com/finance#stockscreener.
As a rule of thumb, Warren Buffett always tries to buy companies that pay a dividend. I personally like to find anything with a dividend yield higher than 2.5%
As a rule of thumb, a company’s book value should increase by at least 7% every year. If the book value is growing at a rate lower than 7%, then the company should be compensating that growth with a larger than normal dividend. (i.e., above 2%). Please keep in mind this is a very general rule of thumb.
If the P/BV * P/E < 22.5 then it was a worth look.
