Page 154 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 73

Price 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 2.6 Volume 1,600,000 800,000 400,000 200,000 © 2009 Investor’s Business Daily, Inc.
Mar 1992

S&P 500 Dec 1991
Sep 1991

Jun 1991
2/1
Mar 1991
Market correction e o e a Buy y Buy Earnings g n E acceleration acceleration o o a a acce e e a e u y d r Dec 1990 Sep 1990
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40–60% of leaders will have a d 0 this normal pullback to, or this normal pullback to, or o n slightly below, buy point. If you b t buy right, you won’t get scared s w i out just before big move. bi f tb tju Jun 1990 Mar 1990

se ek bas Dec 1989 Sep 1989 Costco Wholesale increased 712% in 163 weeks.
reviously y y s g Di Buy 10-week base 1 Jun 1989
Founder was previously pr d d d partner with Sol Price’s o n Price Co of San Diego n f S C Add Add A A Mar 1989

P i
Tight closes c g Add Buy y 4 weeks 4 weeks w tight closes tight closes g g Dec 1988 Sep 1988
F
Market correction
n
Costco Wholesale–1988 Weekly Chart M e Large cup-with-handle is like Large cup-with-handle is like Large cup-with-handle is like k k c c Xerox base in March, 1963 a b ) 3 Jun 1988 Mar 1988 Dec 1987
r

Price = 20*eps 3.50 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 (page 35) (page 35) 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.