I came up with this because I really wanted to find a better way to invest
wanted to find a better way to invest
wanted to find a better way to invest and I think this is it playing the stock
and I think this is it playing the stock
and I think this is it playing the stock market is a volatile game but with the
market is a volatile game but with the
market is a volatile game but with the right tools you just might win hi I’m
right tools you just might win hi I’m
right tools you just might win hi I’m Rebecca Braden and welcome to
Rebecca Braden and welcome to
Rebecca Braden and welcome to watchmojo.com and today we’re speaking
watchmojo.com and today we’re speaking
watchmojo.com and today we’re speaking with Wealth Advisor John swing hammer
with Wealth Advisor John swing hammer
with Wealth Advisor John swing hammer about his book purple chips it’s a book
about his book purple chips it’s a book
about his book purple chips it’s a book that tells people how to invest in the
that tells people how to invest in the
that tells people how to invest in the best quality the highest quality of
best quality the highest quality of
best quality the highest quality of stocks that are out there and so
stocks that are out there and so
stocks that are out there and so essentially I called in purple chips
essentially I called in purple chips
essentially I called in purple chips because they’re like the royalty of blue
because they’re like the royalty of blue
because they’re like the royalty of blue chip stocks would you mind giving us a
chip stocks would you mind giving us a
chip stocks would you mind giving us a few examples of blue chip companies
few examples of blue chip companies
few examples of blue chip companies versus purple chip companies blue chip
versus purple chip companies blue chip
versus purple chip companies blue chip companies would be names like DuPont
companies would be names like DuPont
companies would be names like DuPont AT&T the reason I don’t consider those
AT&T the reason I don’t consider those
AT&T the reason I don’t consider those purple chips is because those in fact if
purple chips is because those in fact if
purple chips is because those in fact if you look at the earnings history go back
you look at the earnings history go back
you look at the earnings history go back like 10 years DuPont is actually making
like 10 years DuPont is actually making
like 10 years DuPont is actually making less money per share today than it was
less money per share today than it was
less money per share today than it was 10 years ago and it’s no surprise that
10 years ago and it’s no surprise that
10 years ago and it’s no surprise that the stock is lower than it was ten years
the stock is lower than it was ten years
the stock is lower than it was ten years ago and the same thing happens with a
ago and the same thing happens with a
ago and the same thing happens with a company like AT&T ok AT&T actually has
company like AT&T ok AT&T actually has
company like AT&T ok AT&T actually has improved a little bit but not very much
improved a little bit but not very much
improved a little bit but not very much so if you look at the earnings history
so if you look at the earnings history
so if you look at the earnings history you know they’re pretty much flat line
you know they’re pretty much flat line
you know they’re pretty much flat line for the last 10 years we don’t want that
for the last 10 years we don’t want that
for the last 10 years we don’t want that but we want is companies like McDonald’s
but we want is companies like McDonald’s
but we want is companies like McDonald’s ok McDonald’s has it’s a beautiful
ok McDonald’s has it’s a beautiful
ok McDonald’s has it’s a beautiful earnings history you’ve got you’ve got a
earnings history you’ve got you’ve got a
earnings history you’ve got you’ve got a chart of earnings that like straight up
chart of earnings that like straight up
chart of earnings that like straight up that’s what you want is it possible to
that’s what you want is it possible to
that’s what you want is it possible to consistently win at the stock market
consistently win at the stock market
consistently win at the stock market consistently so tough one okay because
consistently so tough one okay because
consistently so tough one okay because the stock market has a mind of its own
the stock market has a mind of its own
the stock market has a mind of its own what you want to do is invest in the
what you want to do is invest in the
what you want to do is invest in the best and increase your odds of success
best and increase your odds of success
best and increase your odds of success so I’m not saying that this is a
so I’m not saying that this is a
so I’m not saying that this is a foolproof guaranteed way to make money
foolproof guaranteed way to make money
foolproof guaranteed way to make money because there doesent it doesn’t exist
because there doesent it doesn’t exist
because there doesent it doesn’t exist ok but what you have to do just pick the
ok but what you have to do just pick the
ok but what you have to do just pick the best companies and at least you can
best companies and at least you can
best companies and at least you can sleep that night how do we pick the best
sleep that night how do we pick the best
sleep that night how do we pick the best stocks you’re looking at the track
stocks you’re looking at the track
stocks you’re looking at the track record of these great companies and
record of these great companies and
record of these great companies and you’re looking at earnings history by
you’re looking at earnings history by
you’re looking at earnings history by doing a quick visual inspection of a
doing a quick visual inspection of a
doing a quick visual inspection of a company’s earnings history the earnings
company’s earnings history the earnings
company’s earnings history the earnings per share as I column you can determine
per share as I column you can determine
per share as I column you can determine whether these are companies worth
whether these are companies worth
whether these are companies worth investing in and it’s funny out of all
investing in and it’s funny out of all
investing in and it’s funny out of all the universe of stocks there’s hundreds
the universe of stocks there’s hundreds
the universe of stocks there’s hundreds and hundreds of stocks out there there’s
and hundreds of stocks out there there’s
and hundreds of stocks out there there’s only 43 companies on the TSX that fit
only 43 companies on the TSX that fit
only 43 companies on the TSX that fit our our criteria
our our criteria
our our criteria okay and on the US markets there’s 240
okay and on the US markets there’s 240
okay and on the US markets there’s 240 out of 5,000 listed companies okay so
out of 5,000 listed companies okay so
out of 5,000 listed companies okay so that narrows the scope quite a bit
that narrows the scope quite a bit
that narrows the scope quite a bit narrows the field why is it so crucial
narrows the field why is it so crucial
narrows the field why is it so crucial to look at earnings for sure if you were
to look at earnings for sure if you were
to look at earnings for sure if you were buying a business that’s the first thing
buying a business that’s the first thing
buying a business that’s the first thing you do okay it doesn’t matter how much
you do okay it doesn’t matter how much
you do okay it doesn’t matter how much sales they produce what matters is how
sales they produce what matters is how
sales they produce what matters is how much earnings you produce stock prices
much earnings you produce stock prices
much earnings you produce stock prices are driven by earnings okay if earnings
are driven by earnings okay if earnings
are driven by earnings okay if earnings go flat your stock price is gonna go
go flat your stock price is gonna go
go flat your stock price is gonna go flat if earnings go down your stock
flat if earnings go down your stock
flat if earnings go down your stock price is eventually gonna make its way
price is eventually gonna make its way
price is eventually gonna make its way down too and and that’s the whole thesis
down too and and that’s the whole thesis
down too and and that’s the whole thesis of this book if you invest in companies
of this book if you invest in companies
of this book if you invest in companies that have a rising earning profiles that
that have a rising earning profiles that
that have a rising earning profiles that have fantastic earnings track records
have fantastic earnings track records
have fantastic earnings track records the chances of making money are
the chances of making money are
the chances of making money are excellent would you say it’s more
excellent would you say it’s more
excellent would you say it’s more important to hit one big grand slam and
important to hit one big grand slam and
important to hit one big grand slam and make quite a few failures along the way
make quite a few failures along the way
make quite a few failures along the way I talk about that that’s the psychology
I talk about that that’s the psychology
I talk about that that’s the psychology of investing and we’re not made to
of investing and we’re not made to
of investing and we’re not made to withstand a series of losses it’s too
withstand a series of losses it’s too
withstand a series of losses it’s too hard on the psyche if you have you know
hard on the psyche if you have you know
hard on the psyche if you have you know nine losing investments and then one
nine losing investments and then one
nine losing investments and then one home run at the end of it you know
home run at the end of it you know
home run at the end of it you know that’s it’s all very nice but you have
that’s it’s all very nice but you have
that’s it’s all very nice but you have to be there for that homerun at the end
to be there for that homerun at the end
to be there for that homerun at the end so it’s just too hard morally and
so it’s just too hard morally and
so it’s just too hard morally and psychologically to withstand a series of
psychologically to withstand a series of
psychologically to withstand a series of losses so for someone who’s new to the
losses so for someone who’s new to the
losses so for someone who’s new to the stock market what kind of events can
stock market what kind of events can
stock market what kind of events can have an effect on trading the stock
have an effect on trading the stock
have an effect on trading the stock market is a very unpredictable animal
market is a very unpredictable animal
market is a very unpredictable animal okay and especially these days you have
okay and especially these days you have
okay and especially these days you have companies great companies where stock
companies great companies where stock
companies great companies where stock prices get decimated because they don’t
prices get decimated because they don’t
prices get decimated because they don’t they underperform let’s say or they they
they underperform let’s say or they they
they underperform let’s say or they they change their guidance on how their
change their guidance on how their
change their guidance on how their business is doing you have to be careful
business is doing you have to be careful
business is doing you have to be careful about those things you don’t want to be
about those things you don’t want to be
about those things you don’t want to be invested in stocks that are that have a
invested in stocks that are that have a
invested in stocks that are that have a wishy-washy history that can change
wishy-washy history that can change
wishy-washy history that can change suddenly that’s why I look at pedigree
suddenly that’s why I look at pedigree
suddenly that’s why I look at pedigree okay you’re looking for the companies
okay you’re looking for the companies
okay you’re looking for the companies that have the best track records what is
that have the best track records what is
that have the best track records what is the trick to buying low and selling high
the trick to buying low and selling high
the trick to buying low and selling high valuation it’s all about valuation
valuation it’s all about valuation
valuation it’s all about valuation Facebook that’s where I was going next
Facebook that’s where I was going next
Facebook that’s where I was going next okay Facebook the valuation I mean they
okay Facebook the valuation I mean they
okay Facebook the valuation I mean they initially started talking about that at
initially started talking about that at
initially started talking about that at I think it was 28 to 32 and I thought
I think it was 28 to 32 and I thought
I think it was 28 to 32 and I thought okay that’s not bad you know for a
okay that’s not bad you know for a
okay that’s not bad you know for a company that’s got one
company that’s got one
company that’s got one of the world population following it
of the world population following it
of the world population following it people might like that but in fact you
people might like that but in fact you
people might like that but in fact you know when they came out and said that
know when they came out and said that
know when they came out and said that the IPO would be priced at 38 I thought
the IPO would be priced at 38 I thought
the IPO would be priced at 38 I thought it was not like so tell us about the
it was not like so tell us about the
it was not like so tell us about the Facebook situation what went wrong
Facebook situation what went wrong
Facebook situation what went wrong two things number one the price of the
two things number one the price of the
two things number one the price of the IPO was too high so you to make money
IPO was too high so you to make money
IPO was too high so you to make money you need someone else to buy your stock
you need someone else to buy your stock
you need someone else to buy your stock okay it’s not gonna happen when the
okay it’s not gonna happen when the
okay it’s not gonna happen when the valuation is too high
valuation is too high
valuation is too high secondly and more importantly litigation
secondly and more importantly litigation
secondly and more importantly litigation so when litigation comes up especially
so when litigation comes up especially
so when litigation comes up especially in this market forget it
in this market forget it
in this market forget it game over do you have anything else to
game over do you have anything else to
game over do you have anything else to tell our viewers people are probably
tell our viewers people are probably
tell our viewers people are probably gonna wonder okay where do I find out
gonna wonder okay where do I find out
gonna wonder okay where do I find out about you know the list of stocks that
about you know the list of stocks that
about you know the list of stocks that qualify on this we have a website purple
qualify on this we have a website purple
qualify on this we have a website purple chips calm it’s got everything you need
chips calm it’s got everything you need
chips calm it’s got everything you need to know there great thank you very much
to know there great thank you very much
to know there great thank you very much thank you
”
Be First to Comment