Imagine, being able to look at a stock and within 60 minutes have a sense of whether it could be a buy, sell or hold - whether it is even worth your time to research. This is the Monopoly Method process system at its core - eleven variables and a simple, yet powerful scoring system, which gives you the highest probability of investment success.
Across most industries, you will find that most successful people find a formula and stick to it—only changing if they have been proven incorrect by a system of measurement. That’s the point of a system in the first place—to have the ability to measure your results and make adjustments. That’s where process comes in. It’s where the rubber meets the road in investing. It’s how you answer the most important questions of all, namely:
- How do I decide the right time to initiate a position?
- How do I decide between multiple investment selections?
- How do I determine which investments should be more heavily weighted in my portfolio?
- How do I decide when to sell or take profits?
The Monopoly Method uses a quantitative scoring system based on qualitative inputs. It is dynamic, meaning that an investment’s “score” changes over time based on the stock price and the values assigned to eleven separate variables. The scoring is simple.
- Stocks that score from 10 to 15 are “Buys.”
- Stocks that score from 8 to 10 are “Holds.”
- Stocks that score below 8 require a strong reason to continue holding them or they become candidates for sale.
- Stocks that score below 7 are considered “Sells” or shorting opportunities.
Scoring the variables is straightforward. You assign values from -1.0 to +1.0 (in 0.5 increments) to nine of the variables. Two of those nine — revenue growth and margin growth—receive a double weighting to due to their higher significance with respect to stock-price appreciation. The final two variables — catalyst and price target — receive a slightly different treatment. Learn more...