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Better than Buffett? Geraldine Weiss, the Blue-Chip Queen in men's world

LEO

Oct 25, 2021 14:06

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Although there is no chance to get a typical economics education, Jared has been studying economics through all the books she can find in the San Diego library and listening to the teachings of her parents (both investors). When she started looking for a job in the financial industry, she was rejected by all the investment companies she had applied for. She said: "This is a man's world, and women's applications are not accepted."


Geraldine Weiss's career almost ended before it even started. She decides that if there is no company hired in the end, she will start her own. At the age of 40 in 1966, she founded the well-known American investment publication "Investment Quality Trend" and has been adopting the masculine name G. Weiss in the industry to hide the identity of women. It was not until ten years later that the gender was indicated.


Geraldine Weiss is known as the "blue chip dividend queen", she invented a very smart investment strategy. Warren Buffett (Warren Buffett) will follow four principles when choosing stock investment, but Weiss’s investment strategy only needs one principle. If Buffett follows her strategy, this will bring him more profits.


Through years of investment, she has developed a value-based, dividend-oriented stock selection strategy. This strategy focuses on companies with relatively high yields and uses dividends and other qualitative factors to measure the value of stocks. Buy stocks when yields are close to historical highs, and sell when yields fall.


 Suddenly, this strategy was far more popular than others. Weiss uses seven core criteria in her strategy, including comparing current and historical average returns on stocks.


Today, many women in the financial world still face gender discrimination. But there are more and more intelligent, strong-willed and brave women like Geraldine Weiss, making this secular prejudice less and less.


About "Investment Quality Trend"

Investment guru Mark. Mark Hulbert praised the investment analysis of "Investment Quality Trend" in Forbes magazine in November 1992. From 1986 to 1992, its analysis brought a return rate of 155%, which was outperforming the Wilshire5000 index's 125%, and its volatility rate was 20% lower than the Wilshire5000 index. Its effectiveness has been ranked in the top 10% of the investment advisory industry. Inside. Geraldine Weiss is also the author of "The Dividends Connection-How Dividends Create Value in the Stock Market" (co-authored with Gregory Weiss) and "Dividends Don't Lie".


The characteristic of "Investment Quality Trend" is that it selects about 350 blue chip stocks as the subject of investment analysis, cites six simple criteria, evaluates the quality of stocks, and defines the necessary conditions for blue chip stocks. The six criteria are as follows:


    • Dividends must grow 5 times in the past 12 years

    • In the Standard & Poor's physical fitness assessment, it must be A-level or above, representing an investment fitness above the average level.

    • The number of outstanding shares should be at least 5 million shares to ensure sufficient market liquidity.

    • At least 80 institutions hold the shares

    • Must pay dividends without interruption for at least 25 years

    • In the past 12 years, the company's earnings must have grown for at least 7 years