Building our future may be slow, but it is a safe and secure process.

1. Invest regular sums of money once a month in common stock. This helps us obtain a lower average cost on our investments.
2. Reinvest all earnings, dividends and capital gains. Our money grows faster if earnings are reinvested. This way, compounding of our money is at work for us.
3. Buy growth stocks--companies whose sales and earnings are increasing at a rate faster than the industry in general. They should have good prospects for continued growth, or in other words, they should be stronger, larger companies five years from now.
4. Invest in different industries. Diversification helps spread both risk and opportunity
5. In Visual Analysis of Sales, Earnings and Price, we should graph sales, earnings per share, and stock price figures for the past 5 years. This will help us produce trend lines which will show quickly if we have a stock worthy of further study. The past results help us to project earnings at a reasonable rate.
6. We should use the sales and earning per share trend lines, pre-tax profit margin, and return on shareholder's equity in Evaluating Management.
7. The Price-Earnings History shows how stock prices have fluctuated with earnings and dividends. It is a building block for translating earnings into future stock prices.
8. Assuming one recession and one business boom every 5 years, we can calculate how high and how low the stock might sell. The upside-downside ratio, which measures the potential gain versus the risk of loss, is the key to Evaluating Risk and Reward.
9. The calculations of 5-Year Potential provide a picture of future income. They also provide a standard for comparing income and growth stocks.

Happy Investment has decided that its goals are to:

• Invest in technology based companies (Biotech, Telecom, Info Tech. etc.)  with at least a 5 year history of consistent earnings, revenue and growth. Alternative to a 5 year growth history is a foreseeable sector potential.
  
• Invest for the Mid (18 Months) to Long Term (over 18              Months)
  
• Reinvest all dividends and the proceeds from stock sales, or     other transactions, back into the portfolio.
  
• Develop and maintain a diversified portfolio that will grow at an average of at least 50% a year.
  
• Develop and maintain a portfolio that is diversified by industry, sector and geography
  
• Limit investment in any one sector to 25% of the total portfolio.
  
• Limit investment in any single company to 10% of the total portfolio.