Dan Bunting was a stock market veteran.His 5 Rules to Buy Stocks are:
1. Look for companies where the insiders are buying lots of stock
2. Look for companies generating a lot of cash, as that is almost always the start of sustained outperformance.
3. Look for companies which have monopolies, or near monopolies, and those which manage to take out their main competitors.
4. Remember you are buying businesses, not just stocks. So pay close attention to the quality of the business, and especially the quality of the management. They make an enormous difference. Over time, Dan would say, “class shows.”
5. Look for companies in the consumer sectors — in particular, companies which have earned the trust of consumers, and which have very strong brand names. “As a rule, the closer you are to the consumer, the more money you will make,” he said. “The ultimate guarantee of profit is to possess the trust of the consumer.