Investment guidelines based on future growth indicators / Christo Vorster

The stock market is cited to be one of the greatest tools ever invented for building wealth. The relative small size of the ideal portfolio, consisting of 10 to 12 shares, reiterates the fact that share selection is absolutely crucial to portfolio success and ultimately the creation of personal fina...

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Main Author: Vorster, Christo
Language:Afrikaans
Published: North-West University 2011
Online Access:http://hdl.handle.net/10394/3999
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spelling ndltd-NWUBOLOKA1-oai-dspace.nwu.ac.za-10394-39992014-04-16T03:56:06ZInvestment guidelines based on future growth indicators / Christo VorsterVorster, ChristoThe stock market is cited to be one of the greatest tools ever invented for building wealth. The relative small size of the ideal portfolio, consisting of 10 to 12 shares, reiterates the fact that share selection is absolutely crucial to portfolio success and ultimately the creation of personal financial independence. The main objective of this study is to research, identify and develop investment guidelines based on possible future growth indicators of organisations listed on the JSE. Various possible growth indicators are identified and are statistically related to typical growth metrics, namely sales turnover, sales turnover growth, average share price and average share price growth. These possible growth indicators, identified in Chapter 2 are: • Operating profit margin. • Capital requirements ratio. • Return on equity (ROE). • Retention ratio. • Financial leverage. • Net profit margin. • Return on assets (ROA). • Total asset turnover. • Earnings per share (EPS). • Cash flow per share. • Inventory; and • Dividend yield. This study finds cash flow per share, inventory and dividend yield to be the top 3 future growth indicators, based on extensive backward stepwise multiple regression modelling, covered in Chapter 3. The private investor can utilize these indicators to assist in identifying feasible investment opportunities, thereby moving towards the ultimate personal goal of financial independence.Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.North-West University2011-02-24T14:02:20Z2011-02-24T14:02:20Z2008Thesishttp://hdl.handle.net/10394/3999Afrikaans
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language Afrikaans
sources NDLTD
description The stock market is cited to be one of the greatest tools ever invented for building wealth. The relative small size of the ideal portfolio, consisting of 10 to 12 shares, reiterates the fact that share selection is absolutely crucial to portfolio success and ultimately the creation of personal financial independence. The main objective of this study is to research, identify and develop investment guidelines based on possible future growth indicators of organisations listed on the JSE. Various possible growth indicators are identified and are statistically related to typical growth metrics, namely sales turnover, sales turnover growth, average share price and average share price growth. These possible growth indicators, identified in Chapter 2 are: • Operating profit margin. • Capital requirements ratio. • Return on equity (ROE). • Retention ratio. • Financial leverage. • Net profit margin. • Return on assets (ROA). • Total asset turnover. • Earnings per share (EPS). • Cash flow per share. • Inventory; and • Dividend yield. This study finds cash flow per share, inventory and dividend yield to be the top 3 future growth indicators, based on extensive backward stepwise multiple regression modelling, covered in Chapter 3. The private investor can utilize these indicators to assist in identifying feasible investment opportunities, thereby moving towards the ultimate personal goal of financial independence. === Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.
author Vorster, Christo
spellingShingle Vorster, Christo
Investment guidelines based on future growth indicators / Christo Vorster
author_facet Vorster, Christo
author_sort Vorster, Christo
title Investment guidelines based on future growth indicators / Christo Vorster
title_short Investment guidelines based on future growth indicators / Christo Vorster
title_full Investment guidelines based on future growth indicators / Christo Vorster
title_fullStr Investment guidelines based on future growth indicators / Christo Vorster
title_full_unstemmed Investment guidelines based on future growth indicators / Christo Vorster
title_sort investment guidelines based on future growth indicators / christo vorster
publisher North-West University
publishDate 2011
url http://hdl.handle.net/10394/3999
work_keys_str_mv AT vorsterchristo investmentguidelinesbasedonfuturegrowthindicatorschristovorster
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