How you begin your Bowser portfolio is important!
We have fielded a number of questions recently from new subscribers, and even some who have been with us a few years, wondering how to start up their Bowser portfolio. This process is actually quite simple.
The first thing you want to do is look over the "Minipriced Stocks in Buying Range" table on page 4 of your first newsletter. This table is split into three sections:
- Category 1: Best Picks;
- Category 2: Worthy of Consideration; and
- Category 3: Very Speculative.
As you can tell by the category titles, we separate the companies based on quality. Those in Category 1 are the top performing companies financially speaking. All of the companies in Category 1 have a high Bowser Rating. Companies in Category 2 are financially sound, but may have undergone a tough quarter or two. Most of the companies in Category 2 have a good Bowser Rating, although some do not. Lastly, companies in Category 3 have hit a rough patch financially--loss-after-loss, running up their long-term debt, etc. Whatever the reason, these companies are not performing well, but aren't performing poor enough to sell.
Now that you have an understanding of the categories, look over the companies on page 4, beginning with those in Category 1. If any catch your eye, and are above an 8 in their Bowser Rating, look into them further. You can request original write-ups from us (back issues are available for $6/issue or the Company of the Month booklet is available for $10). After doing some additional research, invest in the companies that you find appealing. Invest equally in each company to be well diversified. You can choose equal share or dollar amounts, so long as you stick to one or the other.
You should have found a few companies to invest in from page 4. To continue to build your portfolio, you'll want to invest in each new Company of the Month that appeals to you until you own 12 to 18 companies. With 12 to 18 companies, all with equal share or dollar amounts invested, you will be well diversified. That way, if a company or two don't do well, you have a number of others to mitigate the losses and keep your portfolio on the plus side of things.
Now that your Bowser portfolio is in gear, follow the Bowser Game Plan, and you are on your way to success in minipriced stocks!