Hyperprofits : Beat the Pros With This New, Proven Investment System
Goodman and Peavy have created a system that appears to promise better stock market success than most. The ``hyperprofits'' system is based on three ``pillars'': the price-earnings relative (a given stock's p/e divided by the average p/e for its industry); the discounted price-earnings ratio (the extent to which a stock's current p/e is below its historical p/e); small companies: those that have a market value less than about $50 million. Starting with $5000 and at least 5 stocks in different industries (for diversification), the small investor can achieve an annual return over the long run of 32 percentbefore taxes and commissionssay the authors, on the basis of a computer test of 2600 stocks over various time periods. They give sources where the required numbers for the pillars can easily be found. Clear, plausible, and recommended for all subject collections. Alex Wenner, Indiana Univ. Lib., BloomingtonCopyright 1985 Reed Business Information, Inc.