Chicks laying nest eggs

date Nov 21, 2007
authors karin housley
reading time 1 min
  • Book Title: Chicks Laying Nest Eggs - how 10 skirts beat the pants off wall street - .. and how you can, too!
  • Author: Karin Housely
  • Year written/published: 2001
  • Summary: Investment Club - how to set up and carry out an invesment club. Karin - writes about how she and other 9 women came together and set up their own investment club to learn and invest together!
  • My Comments: This is the most fun book on investment i have ever read!
  • Some extracts:

7 criteria of a rule maker:

  1. repeat purchase of low-priced products
  2. gross margins
  3. net margins
  4. sales growth
  5. cash to long-term debt ratio
  6. foolish flow ratio
  7. familiarity and interest

Chicks Dozen!

  1. Buy what you know
  2. KISS (Keep It Simple Sister!)
  3. Industry
  4. Leader in its field
  5. Repeat Profitability
  6. Gross Margins (Revenues - Cost of Sales) / Revenues = Gross Margins > 50%
  7. Net Margins Net Income/Sales > 8%
  8. Lots of Cash Cash/long-term Debt > 1.0 Cash = marketable securities and short-term investment
  9. Flow Ratio (Current Assets - Cash)/(Current Liabilities - Short Term Debt) = Flow Ratio < 1.5
  10. Increasing Growth
  11. Strong Management
  12. Buy on Sale