Broad Focus

The objective of IfG is to make money for subscribers

To meet this objective, our hunting ground is smaller and medium-sized growth companies, since such shares can be bought at a reasonable price. However, we hunt wherever we can make money, so we also cover blue-chips, high yielding shares, calls, options, zero dividend preference shares, US and European shares, etc.

IfG is very much more than a 'tip sheet' because it uses REFS (Really Essential Financial Statistics), designed by Jim Slater and which is the stock market's most comprehensive search tool, combined with the editorial team's in-depth research. A regular message from our many satisfied subscribers is that they view the newsletter as an ongoing learning experience, arguing not just what to buy but why.

Focus on the stars

IfG will not mention different shares every month just for the sake of it. Sometimes, the same shares will be mentioned again and again. This is a deliberate policy. There are very few stars and it is important to accumulate a reasonable stake in these high quality shares when they still offer good value, even if you miss the boat first time round. Changing market conditions can create wonderful buying opportunities for even the highest quality shares.

Each recommendation is backed up by the inclusion of the latest REFS page. Our web site allows you to print our explanatory guide, 'How to Understand a REFS page'.

Once a growth share has been selected with high growth in earnings per share in relation to its prospective price earnings ratio (i.e. a low 'PEG'), other criteria are employed to provide a margin of safety. Making sure that gearing is not excessive and cashflow is strong is of crucial importance.

Relative strength monitors the performance of each stock against the market and helps to detect weaknesses before they become too damaging. Directors' buying, or at least the absence of directors' selling, is a great comfort factor.

Taken together, these and other criteria help to protect the downside. This is vitally important because it allows the great performers to carry the whole portfolio through to an excellent overall result. A football manager aims to keep poor players out to allow the brilliance of his stars to carry the team to victory. Managing a portfolio is no different.