“Wisdom shouts in the street” ~ Proverbs

My dad first directed me to this proverb when he asked me to be humble and learn from others. I find this verse very interesting because even some of the greatest investors in the world state that they find investment opportunities from “Main Street” instead of “Wall Street”.

I was reading an article in “Today” entitled, “One Country, Two Economies” and the center comment jumped out at me as an investor. See below (do you see what i see?)

This is what i saw: Despite all the economic turmoil and competition in this globally open economy , there are some industries that “does not face this global competition.” according to the writer.

He especially named, “healthcare, education and government.”

Now, for those who had attended my workshops or read my books, you will know how much i warn people regarding following news. I would like to emphasize that news, especially financial analysis are often opinions and may be what Benjamin Graham (Buffett’s teacher) himself will term “instructions from a crazy psychotic, Mr Market”. (I will talk more about Mr Market in the next few posts).

So how does news serve us? I personally use news to give me fresh ideas to look for investment opportunities. I do not follow news blindly to invest in stocks. We have to do our due diligence:

So how do I verify that the author of the news article is accurate? I look into the healthcare and education sector and look at the their past years’ performance of the companies in these industry.

And i found some interesting companies:

Here are the past 10 years EPS of some interesting education stocks.

The healthcare sector is a really huge one and there are some good performing stocks:

The past 10 years’ records give a good indicator of how able are these companies to thrive in both good and bad times.

As you can see, the companies that are shown above are relatively stable in nature, making profits in both good and bad times.

In my next post, i will talk about understanding the strength of the business model using “STEP” analysis.

You can join us at our workshop where we analysis some of these stocks together.

Click HERE to book a Free Investing Workshop.

To your dreams,

Mind Kinesis Research Team