Ownership Model

This model is buying qualities companies, and holding onto them and EXPECT their value appreciates over the long-term, eventually providing long-term income (from dividen, bonus, etc).

To use this model, you buy stock in a company only if you BELIEVE that you are buying something of value that will be worth much more over the long-term. If you are intelligent, you will develop a systematic approach. Some systems are more precise than others.

The model requires:

1.Intelligent evaluation of a company;
2.Willingness to have patience;
3.A strong stomach. Remember, the average stock price fluctuates 50% over the course of a year; however, the rewards over the long-term are immense, if you’ve done your homework.

Strength
1. This is a proven model that makes you money over the long-term when applied with precision, because profit is a measurable commodity and long-term profitability supersedes any market fluctuations.
2. When applied properly, this model frees you from the emotional roller coaster of worrying about the market or economy. (It offers the potential for peace of mind).
Weakness
1. There is little or no immediate rewards. You must give yourself the pride of ownership. This is the most significant downside and the reason so few people truly apply it.

2. This model is capital investment – in order to produce a sizeable cash flow, you must invest a great amount of capital.

3. This model requires a strong stomach. (Remember, the average stock price fluctuates 50% over the course of a year).

4. This model can cause you to miss the ongoing potential for profit (e.g., Timecom fluctuated from 35 to 45 several times in one year, thus providing many opportunities to profit.)
5. You will need to pay Tax for the dividen / bonus given.