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1. Invest regularly. Market timing is a fool’s game. I will invest regularly, but I will invest in quality growth stocks when they are fairly valued by the SSG.

2. I will invest in quality growth stocks that are leaders in their industry/peer group when they are fairly valued by the SSG, selected by the SCG, and fit in my diversification plan.

3. I will reinvest all dividends to take advantage of the wealth building, eighth wonder of the world, compound interest. Ellis Traub explains this most clearly by saying “If you don’t reinvest the dividends you’ll need an annual rate of return of 20% for five years to double your money. If you reinvest the dividends you’ll need 15%. 20% isn’t likely. 15% is achievable.”

4. I will diversify by

 a. Size of Company sales in a 25:50:25 ratio among small, medium, and large size stocks. Small is < 500 M  in sales. Large is > 5 B. Medium is in between.

b. Industry. I will try to choose a variety of growth industries. I will use OPS industries. A list of sector maps is available by clicking here. Select OPS.htm. (maps for Value Line and Reuters are available too.)

c. Sector. I will not hold stocks grouped in too few sectors. I will use OPS sectors.

d. Number of stocks I hold. I will try to hold between 12 and 20 stocks – (sweet 16 +/- 4) so I will insulate myself from specific stock risk.

e. I will try to equally divide my dollars among the stocks I hold and will consider rebalancing those dollars if any one stock becomes double my planned dollar percentage.

5. I will try to achieve a compounded annual growth rate (CAGR) of 15% for the entire portfolio. I will not have a cow if I fall below this level. I realize the overall market returns about 10.5% on average. I will gauge my success by bench marking it against the Wilshire 5000 yearly return.

6.  I will routinely seek to find stocks with better growth characteristics and better return potential and replace inferior stocks in the portfolio like I did when I originally used the Stock Comparison Guide.