In his new book Get Rich Carefully, CNBC's Mad Money host, Jim Cramer, gives readers his advice on how to find value in the stock market even during times of severe volatility. For investors looking for long-term growth, his 10 commandments on stock picking can help investors assess the key fundamentals necessary to gauge growth potential.
When I make my highest-growth stock selections, I like to go through an exercise that illuminates the strengths and weaknesses of these kinds of companies. I think I have it down to a system, and I want to share my methods with you so you can use the same methods to measure uber-growth stocks. It's my ten-point test that I use every day to isolate my favorite stocks for my favorite themes. Grade your stocks on a scale of 1 to 10-—10 being the best—and then add them up to see which wins. In a diversified ten-stock portfolio you must limit how many of these super-growth stocks you can own because they do tend to trade together as if they are in their own cohort, even though they might originate from different sectors. Just go for the one or two that trump the others.