I've been investing in the stock market for 27 years and, within that time, have helped investors beat the market nearly four to one. Louis Navellier More Quotes by Louis Navellier More Quotes From Louis Navellier There are several things that can create an alpha - stock buybacks are one. High dividend yields are another, especially nowadays because the stock market yields more than the banks and the tenure treasury. But by and large, it tends to be companies with a strong cash flow, rising sales, accelerated earnings, a profit margin expansion. Louis Navellier stock-market high create strong Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks. Louis Navellier us only how me I still love the semiconductor industry. Louis Navellier semiconductor still industry love One of the things that launched the strength in biotech is when the pharmaceutical industry itself got a little slow. Louis Navellier slow things pharmaceutical strength Now quantitatively we rank things on something called alpha over standard deviation, which is the return independent of the market divided by volatility. Usually, to get a high ranking, you need some buying pressure. Louis Navellier high need you pressure All I'm trying to do is manage money and take care of my shareholders. Louis Navellier take-care care money trying We call it the zigzag theory. You want to find something that zigs and something that zags and blend them together to get a better combined performance. Louis Navellier performance better you together I had Dell for four and a half years, and its sales are still phenomenal, but their operating margins started to contract, so I sold it in early 1999. There's nothing wrong with Dell! It's a fine company. It's just the business risk they took. Louis Navellier wrong nothing company business If you go back to 2001, the market had two violent short covering rallies then, although I know the market didn't officially get going until March 2003. Louis Navellier short go know you I sell these intermediate bond portfolios for people that can't go to stocks. Louis Navellier bond sell go people I expect my return to be 18 to 25 percent in 1988, while the Standard & Poor's 500 should rise 8 to 12 percent and OTC stocks gain 15 percent as liquidity emerges. Louis Navellier expect gain rise poor I simply can't buy as much of some stocks such as Detection Systems or United Education & Software as I'd like because there just aren't all that many shares available. Louis Navellier some just like education My advice to the average investor in 1988 is to be patient and think long-term. It will take 18 months for confidence to get better and, in the meantime, this is absolutely no place for short-term money. Louis Navellier better think confidence money There's a lot of companies that profit from a weak dollar. Louis Navellier dollar companies profit weak If you are a short-term trader, you have the right to come and go from our funds. Louis Navellier come-and-go right go you When volume drops off, prices settle down. Volume is the force that turns stocks higher. Louis Navellier drops settle down force I grade my stocks. I'm what they call a quant, one of the geeks of the stock market. Louis Navellier stocks stock-market market call I want attractive stocks that will benefit from persistent institutional buying pressure. Louis Navellier will attractive pressure want In college, I was told the market can't be beat. Louis Navellier market beat college What we do is we test what works on Wall Street. And sometimes it is earnings momentum, and sometimes it's earnings surprises. Sometimes it's price-to-sales cash flow, and then we put together our stock selection models. Louis Navellier test street together sometimes
